satellites captured distress signals from egyptair flight 804 minutes after it isappeared from radar. the beacons could help provide the location of a probable crash sight in the treaptrean sea. in a letter to the u.n. health agency, nearly 100 -- 150 officials called for a change from rio for the olympics, quote, in the name of public health. the state is may be all the water bills for flint, michigan, residents this month. it's an attempt to encourage them to flush the pipes every two weeks to remove all the water tainted with lead. bernie sanders' campaign released a statement reiterating its interest in

debating trump. saying the campaign has received offers by two tv networks looking to air the event. from the bloomberg newsroom i'm mark crumpton. "bloomberg west" is next. emily: i'm 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 we'll 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 string of attacks on a swiss network. the report links the bangladesh breach 000 to an october attack on a bnk in the philippines and the same group are plamed for stealing millions from an ecuadorean group. so how vulnerable is the rest of the flinl industry? i'm joined by symantec's 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 with -- 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 9 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 doesn't matter who is behind it. that's for law enforcement to figure out who the criminals are. what does matter is that this organization has been broken into, and whether it's laz ars or somebody else, they've 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. it's a really elegant hack. at it really proves, the swift is 32 years old and it's based on a 1970's and 1980's 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. they're still working on 5, 10, 15-year-old 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 it's been traced back to multiple other attacks including the sony attacks. the sony attacks were attributed toy -- by the u.s. government to north korea. you can't tell if it is north korea itself, but the fact that this is potentially a nation-state really raises the bar now, changes the threat

model. we've never seen a nation-state go after direct financial gain in the past. typically they're 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 state-sponsored attacker especially to go after money rather than data? >> i agree. i don't 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 doesn't matter if a kid carjacked your car or a sophisticated gangs. what is important is there's been a breach of multiple

organizations and every organization needs to review their policies and protections and decide who is the -- 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 it's usually embarrassing and thought-pro voking because most people don't realize just how open and vulnerable they are. emily: could other big banks be at rive, like the fed? >> yeah, absolutely. this is is not the first time. we've 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 bang ladernlt 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, isn't 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, i'd be really curious to see how they could launder the money. there is on -- an old saying in criminal organizations, it's not how much you steal, it's how much you get away with. unless they have already built an sfralks for serious large-scale 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 opportunityistists who planned really well and attacked low-hanging banks that got caught with their security

around their ankles. emily: interesting. thank you both for sharing your thoughts would -- with us today. a story we will continue to physical. shares of apple fell slightly the ading friday after shares were slashed. but before that the shares had en making a bit of a comeback. apple considered a bid for ime-warner last year, sparking immediate action in time-warner stocks. >> it sounded like a one-off comment in a single meeting that didn't go very far. if you look at apple and the scale. businesses that they would want to be looking at, i would think if they're looking to get into video they would be looking at a platform more than a content

business. welio's oming up, does t p. -- i.p.s. 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 ny 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. twelio filed papers with the s.e.c. it works with major tech players like ube ir. it plans to advertise -- list on the new york stock exchange l.der the ticker symbol tw 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 twillio they're 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 nevers -- nervous, a business to business play that doesn't have the vicissitudes of having to mace off is preferred and they're 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 o.p.i.'s next year months, e next six maybe six more. will twili 0. -- twilio open the door for other companies? or are they just not going to

go? >> definitely an eye -- all eyes scenario. if this is a runaway success, it will inspire folks who are in need of going out but haven't yet. some got their first funds 10 years ago, which means they're constituenting there and need nd want lid wickity. -- liquidity. but we fonte know how many are out there. it's a little more secretaryive -- secretive approach than it used to. we do not expect 2016 to be any -- one for the record books. emily: reports are that they hired bankers to look into this. the only company we think may blue cote public is

and what do you actually watch? any specks? >> we definitely watch nutanics. there is going to be activity at some point. there are a lot of big companies that would have been public in other er ayes. nearing or over 10 years in age. normally the v.c. funds that back these companies have about a 10-year 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 nutanics 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 times -- names that can track their own course are kd -- 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. yks in this edition of out of this world, space x has just launched its fifth rocket of the year. on a barge 400 miles off the florida coast eight minutes after liftoff. they had already successfully landed three of the rockets. e falcon 9 blasted off arrying a commune satellite, taking space,closer to their ultimate goal. no other company has managed to

aunch 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 10-foot nding to its size. it's hoped it will one day help astronauts orbiting earth. coming up, a c.e.o. wlage the all-important question for tech companies these days. how to cap tise 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 cloud-based 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. was out with earnings. while the initial selloff didn't last long, shares were still down about 20% from a year ago. joining us with more on the kurian. netap, george thank you for joining us. >> thank you. there's been a lot of chates in

the market, one the move from solid state or flash storage and then how people want to manage public -- to manage data and the cloud. we've seen real strong acceleration in that part of the business. emily: you're saying that this is just temporary for now? >> we've 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 we're really pleased with the strategic products. emily: the problem is there are a lot of competitors now. how do you compete? >> it's always been competitive. the most important thing when you think about competition is think, focus on the customer. we're -- we're enabling them to take vack of -- advantage of. new caze -- 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: there's been a slowdown? >> certainly in the macro environments. and that does affect people's planning for the rest of. fiscal year, so they do transformative projects that move their business forward. we're 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 move -- merge with dell in the largest mergener tech 4i69. what do you think of that? >> it's a very commex transaction. it's a great deal for the investors but we're not sure it's great for the customers.

with you saw some of that in the results of the fourth quarter this year. emily: it's interesting because h. -- p. -- 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. that's what we're doing. we're pivoting to where customers warrant to take their o. -- 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 that's hag -- having on the private side? >> you have to have really great resources, a scaleable business model and many of the private companies just aren't kd -- ready to be in the

markity -- market. it's 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 it's the first inning of a nine-inning 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 that's something we're 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, or her the alibaba, amazon, google's cloud. that's a very important part of the world going forward. emily: that's net ap's george

kurian. thank you very much for joining us on the show. >> thank you. continue to l will beef up its suite of testing nd 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 trendion topics in controversy. that is next. ♪

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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, were the u.s. dropped the first atomic bomb in 1945. the president said the bombing shows that mankind has means to destroy itself is 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 .en, women, and children thousands of koreans, a dozen americans held prisoner. mark: it is estimated hiroshima blast killed 140,000 people. the president met with those who bore witness to the bombing. survivors praised obama or, as one said, "touching people's hearts." opposing u.s. action in

world war ii, the president said the hiroshima bombing "demonstrated that mankind does possess the means to destroy itself." japan's prime minister shinzo abe said he will decide this summer whether to go ahead with the land 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. warnedg7 meeting, abe 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 prime minister alexis tsipras. aesident putin described missile defense system in romania is a threat to russian security, telling reporters "of course it is a threat to us. we can easily be modified to have -- it can easily be modified to have an aggressive cap elegy." you and pick 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 in there is a 45% chance it will be your normal also last year was slightly below average with 11 named storms including hurricane joaquin. the new season begins tuesday and ends on november 30. memorial day weekend fires say security lines are moving faster than expected. on sniffing dogs are being used at busier airports just need up lines. from bloomberg world headquarters in york city, i am confident. -- mark crumpton. emily: facebook has concluded there is no evidence of bias

against conservative stories in its trending topics unit, but questions of power in media persist. humans make the algorithms and certain decisions in the process. joining me to discuss one of those humans, a former facebook software engineer who worked on the out rhythm -- algorithmic system for the turning news section. thank you so much for joining us. what exactly was her role in the trending topics group? algorithmicon the personalized ranking. for those who have not been following this completely, people are kind of in the middle of sandwich could there is the 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, said that of the things people had marked as yes, these are things facebook would potentially showed 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 what human would -- so human would make the final decision? jonathan: the ultimate decision, what i actually saw -- 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 i could potentially be shown and the algorithm i worked on would actually show the top five from 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 isn't a conservative penalty in the algorithmic ranking, there wasn't a of anything like that. oftalked about having a mix topics, such as we wanted more hard news topics, sports topics, entertainment news, things like that, where you didn't want to have a just be constantly -- we didn't want it like "the wall street journal" but we also didn't want it to be a "people" magazine type thing. we wanted a mixture of everything. emily: at the same time, you wrote a post where you talked about how even if an algorithm determines what is trending, human makes the algorithm, and you said in the post, "confronting the many limitations, technical and human, ai is not magical pixie dust that makes the problems go away. it identifies goals with all the

assumptions and biases therein." what do you mean by that? jonathan: what i mean by that is , well, what i mean by that is the there seems to be an assumption that we will throw data at this problem and things will magically work out. we will get the best results for everyone. but that is not really what goes on. when you talk about that we want to show with the best two people , -- best things to people, we want to show what is most relevant, most informative, most endearing, whatever type of quality you want to put. when it comes down to it, welcome don't want to show nothing but sports, so let that be some number. say what gets and the clicks is most important. but that isn't always what captures the value of what we want is. sometimes, well if you liked it or it is close to you, it must

be imported t catch important to you. --important to you. >> when you are involving humans throughout the process, that inherently leaves the possibility that humans will introduce their own biases. ats is a criticism lobbed the press itself, but when you consider that facebook is a company based in california with many people working on the system, young kids just out of college, most likely liberal leaning california residents. doesn't the entire way the system is built lead to the possibility that they maybe accidentally introducing their own biases? jonathan: i think the type of biasethat the company -- i that the company is towards his middle-of-the-road, vanilla, nonconfrontational thing. this is one of the reasons they talked about in the

gizmodo article and facebook confirmed that these are a list of proven sources. those approved sources are there because they're considered to be sources that are in the mainstream. these are things that the audience actually read. , oh, ifd about having it is a national trending topic it needs to be shown on so many of these things, like 10 major news outlets. these were all mainstream news outlets. these were not like fringe news things. things like "the new york times," "the washington post," things like that. there are those who say that "the new york times" is biased. well, maybe, maybe not. it is kind of the general consensus that yes, it is the party -- the paper of record. and so that is a thing that they want to have this kind of -- trying to go to a neutral thing, neutral voice, but not

necessarily neutral. emily: i thought it was interesting that mark zuckerberg revealed that fox news has more interaction on facebook than any other media outlet by far. jonathan: i would not be surprised. they have a very vocal and active audience. they play that very well. i mean come that is part of the media game. more power to them. mark: so you weren't sort of making the editorial decision per se but you worked specifically on the algorithm. i want to ask a general question about the concept of algorithms in the way it applies to google search results on the facebook trending topic. -- can it ishm be -- can the algorithm be nonbiased if it is coded by people? jonathan: it does what you say it does but that doesn't mean it

is doing it correctly. truth toth -- there is the old saw that there is lies, damned lies, and statistics. publica hadn -- pro an article out early this week about some algorithm being used to determine recidivism rates and it turns out it appears to be biased. according to propublica. what you are optimizing for his may be not what you are optimizing for an what the data is doing, there may be biases in that. it is easy to make an algorithm that socially is inappropriate. emily: ok. i'm sure this is something we could debate for hours but we will have to leave it there. former facebook engineer jonathan koren, and tech news

editor mark milian, thank you both. do cell phones cause cancer? the government wants to end the argument once and for all. ♪

emily: the long-running debate on whether cell phones are harmful to our health is reignited could research from toxicology program in the u.s. has linked cell phone radiation to cancers in the brain and heart. the study is one of the biggest programs undertaken aimed at confirming the science behind issue. we are joined by philadelphia by columnisterg view faye flam. for many years they said there were risks from cell phones and the high risk of cancer. what do you make of the new study?

faye: well, it is one of many, many studies, so you have to look at it in context. it is like the studies that show coffee is either good or bad. dozens of studies have been done. some of them have shown possible very small effect. others have shown nothing. i think if you put it into context, this is just another one that may show a small effect but it hasn't been replicated. and it is also in lab rats, not in people. emily: well, it is interesting that they find the tumors only occur in male lab rats, not female rats. what do you make of that? could you be more likely to get cancer from cell phones if you are a man rather than a woman? faye: well, i think these results can be hard to interpret. i don't know with any of it can be automatically extrapolated to humans, especially considering

it's just a few rats. the statistics weren't overwhelming in the study. so i wouldn't necessarily take it to mean that men should worry more than women about cell phones. there was also another interesting thing i noted in the results, which is that the mice that were exposed to the radiation actually live longer in the control group. they: but interesting, didn't release a lot of data about the mice that were involved in this particular study. do you see any new connection here, any new health standards? what happens next? faye: i don't think that this is likely to lead to new health standards. beenis -- this has always a controversial issue. there are people who are true believers. the bulk of the scientific community has never really been convinced because the studies are, for the most part, show the effects are either not there or

negligible. and there is no really good mechanism. people hear the word "radiation" and they tend to assume that this is something we know causes cancer. it really all depends on the energy of the radiation. the energy of radiation from your cell phone is not the type of radiation that is known to cause cancer. , it isall right, well certainly something we will continue to follow good faith lamb, our bloomberg -- faye flam, our bloomberg view columnist, thank you so much. peter thiel's war on gawker media is drawing sides. is throwingedia support behind gawker over the judgment awarded to call coke i backedd peter th hogan's suit againstel gawker in a sex tape that was published.

first look media is organizing an effort around these concerns "and we will be paying close attention as his case moves into the appeals phase. to be kirk on this is about press freedom, principles on which our company was founded and about which we care deeply ." step aside, beyonce. fun as weriday have got my efforts become a singing star.

\ emily: the shanghai-based social fans am musical.ly gives tool to take lip-synching to the next level. to explain alex zhu why this act is taking the u.s. teenage audience in figure by storm. we have a lot of figures leading to social interaction between user a and user b. one of the features our users

talk about a lot -- physically, if i create a video based on a specific song, another user can create their version of it and the app will turn into a single video could it looks like a collaboration between user a and b. this generates a lot of conversations between the user and it came from this social interaction. emily: you have a background in enterprise software. sap for years. that a you had a different vision of what this became. of time onnd a lot sustainability applications but my passion was always in consumer technology and especially in social media. humanitiestudy the from the psychological factors, and how we can make an application that allows people to meet and make some magic together, right?

in 2014, i was working for sap in the area of education, doing some research on how the education industry will be transformed by new technologies, especially newer applications. and my friend was based in shanghai and he was also doing something related to education, and we came up with an idea to make an education social network. emily: move back to china -- alex: right, right. emily: you started the app, and it became something completely different. alex: we pitched the idea to businesses and we got money, we built a team, spent six months on the obligation, but that education network idea didn't take off. so we had to find some thing new to work on. this something new has to be based on the lessons learned from this previous failure. we got the lessons learned. gc, user generated

content, the content has to be extremely light. the creation and consumption has it within seconds. want to build a community that grows fast, it has to be something related to entertainment, because by nature, people want to get entertained. -- a lot of people are passionate about learning, but it is just a niche. the last lesson learned is that it is always young people who are early adopters of new social media. we have to focus on young people. emily: you have completely unknown teenagers becoming stars on this app with millions and millions of followers. what did they use to gain that following? are they on his everyday multiple times a day? alex: when it gained popularity

last year, it was primarily lip-synching and dancing. millions of teens came to the app doing lip-synching and dancing. those videos were hilarious. if you watch those videos from those teens have invented a new language, entertaining, and using the entertainment factor we were able to build the social hub. people started following each other and having conversations. once you have the social government you notice the behavior has changed over time. rande, you have ariana g jason derulo on the platform. how much are you spending on getting famous people? alex: a lot of musicians, artists, it came automatically. new platform

that allows artists to promote their songs and engage fans in any way. -- a new way. emily: but you do have a team in san francisco focus on this. alex: small team based in san francisco focus on artist relationships. emily: do you see yourself competing with snapchat? alex: no, we don't. what we are doing is unique. there is no direct competition. but we want our user base to wend more time on the app so are competing with all apps from a time-standpoint of you. that is how we look at it. emily: who are based in china. what is it about a china-based app that speaks to u.s. people? alex: i think today, especially for mobile applications, , canially if you are part

gain traction without having to spend a lot of resource in doing marketing and promotion. it doesn't matter where the team is based. understand the psychology of your user base, as long as you have constant interactions with some users, i think it doesn't matter. emily: musical.ly cofounder and ceo alex zhu. tech insider reports that toyota is close to acquiring boston dynamics. earlier this year bloomberg reported that its current owner google was looking to sell because it was in developing products that could lead be brought to market. toyota is pushing into the robotics world, investing $1 million recently in a new robotics institute based outside of boston.

before we go, we believe you with one story we are geeking out about. facebook and microsoft are teaming up to build an undersea cable. it will search 4100 miles. it is designed to have a bandwidth of as much as 160 terabytes per second, the highest capacity of its kind. begin inion will august and is expected to be completed by october of next year. that does it for this edition of "bloomberg west." tune in this weekend for "the best of bloomberg west." you will see all of our great interviews of the week. have a wonderful long weekend, everybody. we will be back on tuesday. ♪

>> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with politics. a report delivered to congress yesterday, the state department's inspector general criticized hillary clinton's e-mails, saying clinton violated government policies in using a private e-mail account as secretary of state. the next are asking why she did not seek permission to use it and why she refused to cooperate with the expect for generals investigation. -- with the inspector general's investigation. clinton has refused to respond.