microsoft is almost 3x what apple has done, which is to say a thousand dollars invested in apple, right now 35 years ago would give you 980,000 microsoft would give you 2.8 million. microsoft, lower beta versus the market and the qs offense and defense all in one >> wow mike, what's the trade >> yeah. so i think microsoft is interesting just from a fundamental standpoint as well we often talk about apple as basically having this built-in customer base. microsoft has that, too. of course, they also are basically at the forefront of an important spot one is with teams. that is the product that essentially competes with slack. that's very well liked and obviously is very well positioned, i think, as we increasingly see people working remotely and even once we start to return to other people's offices, this is a part of the flow. the other thing is cloud we usually talk about aws, but critics of that analysis quickly point out that the s&p earnings better a whole lot more than microsoft last year i would agree with you but the reason for that is that microsoft's earnings grew about 25% year on year over a tough time and are forecast to go higher over the next months. we know t

microsoft is almost 3x what apple has done which is to say $1,000 invested in apple right now 35 years ago would have given you 980,000. microsoft will give you 2.8 million. microsofter beta .89 versus the market it feels offense and defense. >> wow mike, what's the trade >> yeah, so i think microsoft is interesting just from a fundamental standpoint as well we often talk about apple as basically having a built-in customer base. microsoft has that, too. of course, they also are at basically the forefront of an important spot one is with teams, that is the product that essentially competes with slack. that's very well liked and obviously is very well positioned i think as we increasingly see people working remotely even as we start to return to each other's offices, this has become part of people's workflow the other is cloud this is an area where we've had a tremendous amount. right now the company is trading 30 times over earnings that interestingly is where the s&p is although critics of that analysis might point out that the s&p earnings were hurt more than microsoft last year i would agree with you the reason is microsoft's earnings grew year on year they'll gr

microsoft seems to be the one unscathed, because like you mentioned, they dealt with this back in the 1990's. what can google glean from microsoft's playbook as they are facing antitrust scrutiny of their own? david: well, i think the big lesson from the microsoft case, or one of the big lessons, was that that litigation, which went on for many years, almost led to the breakup of microsoft, but did not. it distracted microsoft in a big way. many people think that that sort of distraction that it caused helped lay the groundwork for other silicon valley companies to emerge, and eventually become very dominant. we will see if something happens like that again. it will be many years down the road. but it is so noteworthy that it has been two decades since something this serious has been affecting silicon valley. taylor: thank you for the conference perspective, breaking down what has been a complicated story to follow. we appreciate it. another strong corner -- quarter for doc you sign. letting us sign from the comfort of our jammies in our own home. we see what the future holds as business gets back to being in person. ceo dan springer is going to break it down for us. ♪ taylor: e-signature firm doc you sign-- docusign surged as demand skyrockete

microsoft in the 1990's. ok echo -- ok? a very long time ago. if we had not brought that case against microsoft, google may not exist today. because what microsoft was doing was taking in monopoly and operating system with 95% of desktop computers. and using that to exclude competition in the browser market and say, in that case it does not matter if you have a better product or better innovations, you will not be able to compete based on merit. we are going to use our muscle to make sure you are not preinstalled in any computer that is on the market. that is exactly what the google -- that is exactly what google is now doing with the android operating system. ramming its own apps and all of the suite of services down everyone's throats because it has such market power in the android system. but if we had not brought that , case against microsoft, what would have stopped microsoft from saying we took over the browser market, now we are going to take over the search engine market? really what we want is to allow competition on the merit and the idea that every company is innovating with the goal of being acquired by a monopoly is also not good fo

microsoft miss this attack and how can customers like the u.s. government trust microsoft to uncover future vulnerabilities when microsoft missed the worst intrusion of worst government agencies as quoted by reuters? mr. smith: to put it in its simplest terms all 60 of the microsoft customers who were attacked had their networks penetrated on premise, meaning in their server room, in their building, it was not in our cloud services. if someone broke into your house but not my house, i would not know until you told me, or in this case, what they did was they went into your house, they found the keys, the passwords so that they could go into the service in the cloud. once they got that, once they stole your keys, once they entered our cloud service, we saw them and we called you and said did you know that they are in your house? did you know that they have stolen your keys? did you know they have now entered the service that we can see, and did you know unlike awf , unlike even google, edit microsoft we let you know as soon as we find out that someone has treated your network and it does not matter whether it has anything to do with our service. rep

microsoft. a crackerjack trader on the exchanges but also owns a string of restaurants. dave, what you think about this will microsoft? >> my best guess is microsoftg based on what their competitors did to them in 1999 because this is like the exact same thing microsoft fought against 20 years ago. the hypocrisy is stunning. larry: remember they were going to break up microsoft because they were a monopoly? in the whole game completely -- and microsoft, that changes business model. it's nice to see a little brook corporate socialism. i kind of enjoyed it. a little planning from the boys. charles, and jim back to you on the market. the dow is doing very well. the s&p finished above and is doing very well, they are breaking records but the nasdaq is not. blaming this on rising longer-term interest rates, can you walk us through this? why would one or two indexes you great but the nasdaq won't do great? they are dealing with the same interest rates. >> yes, that's one part of the problem. a lot of these tech companies supposedly are more sensitive but i don't know if it's true or not, doesn't matter. it matters what the market thinks. there's another

microsoft which was in the 90s. very long time ago. and we haven't brought that case against microsoft, google may not exist today because what microsoft was doing was taking its monopoly into the operating system for desktop futures, 90 percent of desktop computers had this operating system. they were using that to exclude competition in the browser market and say it doesn't matter if you have a product innovation. he based on merits. going to use our muscle to make sure you're not reinstalling any computer on the market and that's exactly what google is now doing with the android operating system. ramming its own app's home suite of services down everyone's throat because it has such market power in the android system but if we had not brought that case against microsoft, what would have stopped microsoft from say we took over the browser market, how were going to take over the search engine market. what we want is to allow competition on the merits and the idea that every company is just innovating with the goal of being acquired by a monopoly is also not good for theeconomy, not good for innovation . i recommend a paper out stanfor

administration is reportedly launching a task force to investigate the recent hack attack of microsoft's email servers. microsoftday by a state-backed chinese entity. at least 30,000 u.s. businesses and government bodies were breached in the attack which is believed to have started in january. u.s. officials say there's no sign federal agencies or major defense contractors were impacted. >>> now you can own a piece of twitter memorabilia. the company's co-founder, jack dorsey's, auctioning his first tweets with bids hitting $2.5 million. in march, 2006, he posted "setting up my twitter." it will have a unique digital certificate that states who owns a picture, video, or other form of media on line. the tweet will stay public even after it is auctioned off. and dust off those mickey mouse ears. disneyland is among the california theme parks that can reopen next month. the parks are allowed to operate at 15% capacity, but only people who live in the state can buy tickets so far. disneyland's president called the news encouraging saying, quote, thousands of people will now be able to get back to work. the theme par

microsoft microsoft -- in arizona we are still recovering from a criminal cyber attack that occurred in late every. the shows how damaging the results can be in the resources needed to recover. this is a very timely hearing. the federal government must do more to help entities such as kingman and to improve its own system to ensure federal -- has the things they need to respond to future cyber attack through may 1 question is we recently heard from the government at accountability office of its latest list ensuring the cybersecurity for nation was getting significant change me what immediate actions would you take to address the outstanding recommendations for gao and investigations into the solar attacked to help agencies better secure federal systems and protect cyberinfrastructure andbe data? >> senator thank you for the questions. this committee supporting giving us a down payment in american recovering plan to start on this crucial work so with the billion dollars to invest in the modernization fund we will be a look at top down some of the high-risk i.t. systems across government so we are able to tackle some of the persistent long-term challenges that we've been aware of and just haven't had the resources to address. also the monies are going towardss sisa and gsa and we are looking towards developing managed security services where valuable and also ensuring we are making investments in the agencies through the annual budget process to fill gaps divide benefit to the solar wind since then. we have a lot of work planned and we are looking forward to working collaboratively with sisa to implement across all federal agencies. >> thank you. my next question is for mr. wales and mr. derusha. we are increasingly -- that manage critical areas such as transportation and health care and energy. how can we avoid cyber attack risks within a more specializeda software provider mitigation -- and if we can howze do we minime risk across these critical supply-chain? spanhe thank you. we do a lot of work and i'll say the outset changing the market is challenging. and the reason those concentrated risk or market conditions that are largely outside of the federal government's ability to control. we do try to work hard particulate withk the vendor community who makes aal lot of these industrial control systems to systems that manage critical infrastructure and operate the systems that we all rely upon. we work with a vendor committed to strengthen security built into those devices and we actually have a lot of work focused in the industrial control systems space with the owners and operators of those systems to identify what additional protections and security they need to have in place at the cybersecurity and industrial control system is challenging its unique discipline and with although -- it magnifies the couple of times fold the cause of the unique nature of the "empire". it's an area that we have a focused effort on to release a strategic planan focusing on i.. systems. late last year and we are working out the white house and d.o.e. anddd others on additionl work to see what we can do to get better inside and provide additional expertise to help secure those systems. >> thank you. my next question is for mr. derusha. it's meant to bring more cybersecurity training to federal employees. it's been a challenge [inaudible] what does actions of the congress administration need to take? >> 's senator i can say i'm aware of that challenge and it's definitely going to be a priority ofor our office with te cio to work with personal management to explore all the current hiring authorities that we have in place and ensure that agencies are using them and understand how to use them so you can expect that we will absolutely prioritize this. >> my next question is for mr. wales. aqap combetta cyber attack his defense information sharing but we continue to hear from the private sectorn entities that they are expecting transformation that the federal government is slow to reciprocate. what are your recommendations for incentivizing companies to notify the federal government when their networks are compromised and how is sisanc to -- working to improve their information systems? >> thanknk you for that and i wl start by saying we have received a lot of positive feedback from companies that have come forward recently to lessen to the federal government. and i want to thank those companies because frankly cyber requires a collective defense and we are only successful if people come forward and work with us but i would also say we worked hard over the past year to improve in which we can provide actionable information when we receive information from the private sector and again it may not be information back to that same company but the information theo provide is going to raise everyone else's baseline. when we receive information from a company nature that an auto might way other companies are not victimized in the same way and i think both the solar winds case as well as microsoft exchange vulnerabilities the kind of which we are notified and provided information from potential victims in the speed weed get information out publicly is now measured in hours and days and not weeks and months. .. in the value proposition back to those companies that today you share this information but tomorrow you want other people to share information see you can benefit from it you are not victimized by the next cyberattack because someone is sharing information with the federal government to enable the collective defense. >> thank you senator sinema. >> senator recognize. question. >> you wrote in your testimony adversary goal, it is to use omthat compromise and furtherance of a larger objective. in this case, give us a sense of what that larger objective is or was? >> center to thank you for the question. i think the intelligence community and the unified coordination group that's coordinate the response to this incident has set in its public statements that the intent for th

. >> can you deplorably say that the microsoft change pack -- microsoft exchange pack was done by chinae will be in a position to attribute it at some point in the near future and we won't hide the ball on that. we will come forward who we believe perpetrated the attack. >> what is the status of any tax with iran -- of any talk with iran? >> their argument occasions through the europeans and others that enable us to explain to the iranians what our -- what our position is. and we are waiting at this point to hear further from the iranians how they would like to proceed. from our perspective, this is going to be, this is not want to be easy. we believe that we are in a dippel medic process now that -- diplomatic process now. >> as it relates to iran, is the u.s. not going to respond to the last round of rocket attacks? we heard from the former secretary of state, mike pompeo, saying that ayatollah recognizes the only strength is the u.s. demonstrating weakness in that relationship. >> if you look at the pattern of attacks that took place over the course of 2019 and 2020 against american

microsoft elements? i go past ar. you have used microsoft elements? i have. i had a career— microsoft elements? i have. rsaw a building site. i had a career change and oversaw a building site.— a building site. i got to build nicer perseverance - a building site. i got to build nicer perseverance rover i a building site. i got to build i nicer perseverance rover before it existed. this time over went to meet its creator and talked about the new ways we could be working together in the future. as we settle into 2021, we are going to be hearing a lot about augmented reality. facebook is set to lodge that smart glasses this year and they are working behind the company behind ray ban so they may be something you might even consider wearing. sorry, google glass. since 2015 it is microsoft who have been pushing forward with hollow lands across areas including design, engineering and medicine. and this is the latest reiteration of the device. 2019's hollow lands to, lighter, slicker upgrade and it allows users to experience what it calls mixed reality. what is that? it is similar to augmented reality except th

was more on the multiple that microsoft got, as he expressed the vision very differently than previous ceos had. it wasn't microsoft versus everybody else it was more, microsofthis broader vision of cloud, of enterprise focus and where the consumer fit into that and giving people, giving developers what they want to use. that embrace of open source, which is very different from what microsoft had tended to say before intel in a similar position. in the past kind of intel's way. what flavor of x-86 would you like i wonder to what degree that changes if at all with pat gelsinger. >> the fact you compared him so early on to steve jobs, satya nadella sounds like a vote of confidence. >> wait. whoa, whoa, whoa i'm not saying he's steve jobs or satya nadella i'm saying those are the turnaround presidents. those turnarounded worked's in so in what ways do though structures, formulas, apply to intel's situation is all i'm saying. >> fair enough. but we can't forget the previous intel ceos that weren't quite successful i like your comparison, though, to, you know, the -- the employ that comes back and perhaps has something to prove i know that you've known pat gelsing

microsoft joining us today, brad smith. brad leads 1500 business, illegal, corporate affairs professionals located in 54 countries, but operating more than 120 nations. and microsoft, he plays a key role in spearheading the company's rule on critical issues involving the intersection of technology and society. in wisconsin, brad is a graduate of princeton university and received his j.d. from columbia university law school. over the past decade, brad has spearheaded the companies work to advance privacy protection for microsoft customers, the rights of dreamers and other immigrants, including bringing multiple lawsuits against the u.s. government on these issues and bravo, brad, thank you for doing that. in the time i've known brad, i've always valued his insight on the responsibility of the private sector to preserve and promote civil society. brought is uniquely qualified to speak about the types of values of faith based principal leadership, not just at the corporate level, but at the personal level that will be necessary for american leadership in the 21st century. so we're so grateful to have you with us today, brad, and i can't thank you enough personally. >> well thank you john, it's great to be with you and both bookings and mount vernon, to great institutions. so it's a pleasure and it's a great topic to discuss, i look forward to it. >> well, will benefit certainly from your views on these many issues that we will be facing. so george washington. general washington and then president washington spo

the white house is reportedly launching a task force to look into the recent hack of microsoft email servers. microsoft said the software had been compromised last tuesday by a state backed chinese entity with some government bodies breached in the attack believed to have been started in january. lawmakers are pushing bills to allow laws for social media censorship. there have been bills introduced to pave the way r ci for damages of $70,000 for each blocked post and across the aisle, democrats are calling for greater scrutiny of big tech. baby food will get a more scrutinizing look with the food and drug administration increasing inspections after a report found dangerous levels of toxic heavy metals and the fda said it is beginning to set concrete standards for baby food and they remind manufacturers of their responsibility to reduce chemicals. back to you. >>> the word is disneyland has the green light for reopening and what does this look like? >> it's now among the california theme parks that ca reopen. >> reporter: the parks are allowed to operate at 15% capacity and so far, only those who live i

microsoft is on the digital frontlines. increasingly, fred is communicating with policymakers on microsoft's leadership role and fostering job tuns in the united states. thanks for joining us today. thank you for microsoft's partnership and support of today's program. >> patrick, it's great to be here with politico an it has been a great partnership we've had for many years. you know, i always look forward to this partnership because i use today work for a governor. i worked for the governor of the great state of tennessee. when i think about my career, where i learned so much was working in a governor's office. when i think about, you know, the 50-state solution discussion, i think about justice bran dice an when he famously -- brandeis when he famously stated, states are laboratories of democracy. when i think about the great group of governors that you have that are participating today, think about what they're doing, with regard to covid-19 and economic recovery, i just want to say thank you, thank you, thank you. not only to the governors who are participating today but all the governors for their tireless work when it comes to trying to meet the needs of the people in their states from a health pers

microsofts are identity and authentication processes. you have a good relationship with microsoft i never heard microsoft being cascaded like that fair is viously have done a tremendous job resdoing their business toward the cloud. fa no great progress in a great time. they are a little more dated so i think again they are rapidly moving to secure the initial signing in and authentication but often that's where they turn toward sale point as well. that's the relationship, hey, can sale point help me govern and secure that access so i know that when jim logs in, jim is getting to the right stuff and being kept away from the stuff he shouldn't ccess. >> that's what you need to do to protect yourself here is what i'm looking at. say you're a bad guy in a, parking lot and who has buttons down, who is locked. you don't go for the locked guy. you go for the guy with the car door open. i'm thinking you know what that car door is open. that's the guy i'm going to hit. i'm not going to hit the sale point guy. don't these companies know that is happening >> such a good point more and more companies are trying to figure out how do i discourage bad

microsoft and only microsoft looked undervalued there and the other five were not massively overvalued but they're all 15 to 20% overvalue. what you've seen in the last six months is consolidation sideways movement i think microsoft would be the one i have in my portfolio i think part of the adjustment is you've given back gains that came much to easy in my view >> professor, it's tim thanks for joining us. if i was in your class, my guess is an entry on the curriculum would be pointing out just the relationship without the enter rate dynamic of valuation of the stocks, and cwith covid, there was this mulligan on 20 and 21 at some point as we get through 2021, i think you could have taught in your class and i'm sure you do that earnings do matters. so i know you brought that up. but i -- i would make an argument with a 110 tenure at some point we have to pay the piper on what we did on covid when we said we don't care about earnings what do you think? >> i completely agree. i think you spend a trillion here and a trillion there and after a while it starts to add up to real money, as they say. we've frond ended a lot of spending that we've done over four, five, six years, and i think that -- that's what troubles m

microsoft is the obvious target here, because the products are ubiquitous throughout corporate america, and individual homes throughout the country and around the world, and if you are microsoft, you know that you will have incoming cyber attacks, and what did microsoftas so widespread as fast as it did >> well, i mean, when you are a company the size of microsoft, and you are running the different software packages whether it is something that you host or the microsoft office suite and other thing, that i have a giant surface area, and hundreds of thousands of engineers that are working, and obviously, nobody wants a bug that can be remotely exploited or taken advantage of, and so it is hard to say what did they do wrong, and i don't want to point finger, because it happens, and this is going to have major impacts and it is not a consolation that has occurred, but from the sense of having an entire team dedicated to taking in, you know, ind sind rare reports and response and they take it seriously, i think that sometimes the patch or the solution is not necessarily, you know, ahead of the vulnerability being exploited more widely, so in the sense, i am not here to critique them, but that is where it lands. >> this is jon fortt, and so thank you for

microsoft -- stuart: microsoft is down four bucks. susan: is that the only focus you have now? google is almost flat. so is apple. stuart: stick with that statement, big tech is coming back, exempt for microsoftsing 1% is not a selloff. stuart: whatever you say. i want to see visa. they are now, wait a minute. have they become a bitcoin play? they're accepting bitcoin. susan: that's right. that is helping bitcoin prices. we're closing in at 60,000 almost, big deal a largest credit card network in the world is piloting a program to allow transactions using a stable coin backed by u.s. dollars. then visa will use this stable coin to sell tans actions, via crypto ethereum on a digital platform. stuart: what is the stable coin? susan: backed by u.s. dollars. whereas ethereum and bitcoin are not backed by any fiat currencies. the fact their own stable digital u.s. coin. stuart: their own? visa has their own sort of coin? susan: it depends how it is executed. but for now, that is what goes through their network. stuart: what roll does about it coin play? susan: it doesn't. stuart: it doesn't play any role. susan: transaction and thinking if visa allows their coin for now, that bitcoin maybe around

microsoft is on the digital front lines. increasingly, fred is communicating with policymakers on microsoft's leadership roles in fostering job opportunities. fred, thank you for joining us and thank you for microsoft's partnership and support of today's program. fred: patrick, it is great to be here with politico and it has been a great partnership we have had for many years. i always look forward to this partnership because i used to work for governor. i worked for the great state of tennessee and when i think about my career, when i learned so much was working in the governor's office. when i think about the 50 state solutions discussions, i think about justice brandeis and when he famously stated, states are laboratories of democracy. when i think about the great group of governors you have and that are participating today and i think about what they are doing and the economic recovery, i want to say thank you, thank you, thank you, not only to the governors but all the governors for their tireless work when it comes to trying to meet the needs of the people in their states from a health perspective, from an economic perspective, and just trying to make it able for everyone to have the opportunit

microsoft miss this attack and how can customers like the u.s. government trust microsoft to uncover future vulnerabilities when microsoft missed the worst intrusion of worst government agencies as quoted by reuters? mr. smith: to put it in its simplest terms all 60 of the microsoft customers who were attacked had their networks penetrated on premise, meaning in their server room, in their building, it was not in our cloud services. if someone broke into your house but not my house, i would not know until you told me, or in this case, what they did was they went into your house, they found the keys, the passwords so that they could go into the service in the cloud. once they got that, once they stole your keys, once they entered our cloud service, we saw them and we called you and said did you know that they are in your house? did you know that they have stolen your keys? did you know they have now entered the service that we can see, and did you know unlike awf , unlike even google, edit microsoft we let you know as soon as we find out that someone has treated your network and it does not matter whether it has anything to do with our service. rep

there is a lot of press commerce around the fact that microsoft, the president of microsoft came out and said that he supported a federal data recertification law. that is not a surprising change from large corporations because they are facing individual states regulating them. if they are going to have 50 states, they might as well have one key federal law and comply with that one standard rather than 50 individual standards. one of the challenges these companies face is -- we have to figure out what is going on. we might get regulation. we might get lawsuits. we have to make sure we have done this thing the right way. there is this balance between protecting the company and shareholders and customers and disclosing information so the larger ecosystem can be protected. there are a lot of interesting ideas about this. we have had debate about these things. one of the interesting ideas i have heard is how do we let companies report what is happened to them, but we do not disclose their names and we allow them to be anonymous and we tell them, you are not going to face regulatory liabi

microsoft vulnerability in microsoft windows to potentially spread spyware or malware throughout service automatically instead of having to go server to server manually set your spyware automatically. we used for espionage we're using it for some of the best counterintelligence we got at the agency. but once it was dumped online in 2017, north korea picked it up. they bolted onto ransom ware and got into hospitals in the uk, locker rooms all over the country, unfortunately they've been a little bit sloppy with the code was able to be neutralized pretty quickly. but a month later russia picked it up in this attack on ukraine and 2017. and they designated the equivalent except there is no way to pay a ransom on ukrainian government agencies. it really paralyzed ukraine. people could not pay for gas the gas stations they could not get many out of atms, it caused their postal service the railways to be paralyzed. but it also hit any business that even had a single employee working from ukraine. so visor was hurt tasmanian chocolate factory in tasmania was sick, it was famously hit that year that attack decimated its vaccine production line. it actually had to tap into the cdc's emergency stockpile of vaccines that year. but because all kinds of destruction partly with stolen exploits. and when i went to the ukraine, i don't tear yourself to the attack credit would've gone sooner but i just had a baby. i got to ukraine it was two years later. things are still not back up to where they were. they're still figuring out how to eradicate some of this ransom rare from their railway systems the post service just lost all of the records of where to ship what. i even went out and met with a man who worked it chernobyl the old nuclear site for the attack and taken out the systems they used to monitor radiation levels. and so they were still using manual radiation monitors, walking around the nuclear exclusion zone went about everyone who met with the attack we are russia's text kitchen for these attacks someone using the scientific method to sing capability here, testing another there. occasionally turning off the lights but only for six hours. we actually think this attack that i just described was their final cleanup. they wanted to clean up after all of the experimenting that had been done on our system. we believed we are not the end target here. we think you are. and we think this was all just a test run for some future attack on the united states. that was terrifying tear especially for my vantage points. i had cover all of these incursions we picked up by russian hackers into america critical infrastructure electrical utilities, gas pipelines, we did not really know what they're doing at first. we thought okay maybe russia is trying to steal our intellectual property because their economy is so dependent on oil and gas. maybe they are trying to diversify. but increasingly it was clear this was the preliminary speeches for some future attack. but the ukrainians are saying you don't pull your head out of the sand, you are going to see this kind of attack. but when it comes to his good be so much worse. here we are not that digitized. we have not digitized our elections. yes they were able to turn off the lights, we have not face this vulnerable software into our hospitals when it comes your way it could be a lot worse because you are just so much more wired. >> that was very scary the notion of just think you called in attack surface area or something >> the world greatest attack surface. >> you connected everything. it's interesting going to jump back a little bit to the notion of you writing this book injuring to reach people. just something that came to major time translating this for folks, english was not your first language. correct? >> to jesse my tweet on this? okay so it is, but when i was to when i first started speaking my data is a professor of medicine we were going on sabbatical. every two years. so when we were living in paris some of my first words, i mentioned that because one of the criticisms of the book was that someone said it was to u.s. centric it ignored the europeans when they use xena phobic to european which i don't even know is a possibility. anyway i had to laugh when i read that because i am a dual citizen. we spent so much my childhood in europe. my mom's.my dad's whole family is from poland. meka thought that was funny when was pointing that out. your canceling that world for a lot of people right now. you are looking at, i am curious as the ten years have by that you've been covering this, have you gone from your privacy not the neophyte that you were when you started this process. you know what about a ring referencing other people's books. i wonder, have you delved into it yourself? have you sat down and hacked with people where have you gone in this process get a better understanding? >> versus is still don't code. but i've definitely looked over people's shoulders a lot of the time. one the first things i did at the time when i got there they met a hacker hd moore who is a legend. i said, show me the lay of the land. what should i be writing about? what are the things we should be concerned about that knowing is paying attention to? i said videoconferencing which is so funny now. this was ten years ago. videoconferencing everyone has his video conferences no boardrooms or hospitals did not put these behind a firewall, they are not set up with a password or course of ten years later zoom bombing was. that's essentially what he is describing. he and diane gave me a virtual web tour and he showed me here so you get on to this place of the internet essentially we can find these open systems just sitting out there for you can on them and see whatever they see. hit one point assured you can zoom into a room into a window and across a parking lot where squirrel was burrowing in the dirt. i was doing a lot of that kind of thing. i was basically getting tutored and the capabilities and the vulnerabilities that hackers exploit. on these days i still am learning is still very green i still have a complex in this space. try to think of it as an asset you know the lingo a little too well, you stop translating it as well. i kind of like where i am worried don't know how to code. maybe when i finally get out of cybersecurity i'll learn to code but no i don't. spent okay just curious. i'm going to take a move over we have a question our audience in the q&a. i would like to pick up a couple of those. first one here is from joel, hi joel. >> should there be a mandated cybersecurity firms share hacks and how they were done? yes. not just cybersecurity firms but government. there is a big discussion now about threat sharing. his mate a little bit more complicated after snowden. for long time the government said most data that we see now is not at the nsa. as you go to web services these are the new frontline being the threats and malware and intrusions play out peripheral want in the government was threat sharing and then after snowden on the leaks the last thing you ever wondered was any kind of mechanism for real-time threat sharing with united states government because foreign governments were so appalled at the level of access to snowden dockets appeared to show in the level of collaboration it appeared to show between industry and the nsa. as a thorny issue for some time. but as it got worse and worse there been more and more calls and demand for better threat sharing for this is in your data threat sharing. this is the ip addresses the techniques and the malware strains that security firms and also google, apple, amazon or better picking up the nsa is picking up. so we have seen better information sharing. one of the things is getting discussed more and more now especially after this latest russian hack because it came in a company called solar winds from used to get client systems to their software update. when the things is discussed this week in the senate hearings was mandatory notification laws because basically what they were saying was if solar winds had been better set up to catch this, earlier and told the u.s. government but also microsoft and fire icon then maybe we would not of had to wait nine months until fire i discover it had been hacked it's a major security company. the government agencies. this is a big topic for discussion. the problem is any talk of mandatory requirements on this , companies are usually so reticent to admit they've been hacked because they're worried about class action lawsuits and stock prices dropping that a lot of times it creates this incentive will they will design their systems so they don't pick up whether they have been hacked for they do not have to notify anybody about it. we do need better notification and threat sharing and it wait that's not creating a perverse incentive for them to not look at whether they've been hacked or what they are seeing. >> you mentioned in the book on that note about the notion of zero days themselves market involved in the states and the other people are buying them or picking them up, goes back to the river con one the nsa held onto that because they

microsoft exchange full abilities last week and sector and the supply chain complex the federal government was over to december 2020. starting with exchange vulnerabilities on march 2, cisa am innocent, microsoft disclose previously unknown vulnerabilities in microsoft exchange products. through coordinated disclosure process our organization help all partners insurable the building engaged actions were quickly shared broadly. on march 3, cisa issued executive emergency directive 2102 requiring federal civilian departments and agencies to investigate, patch and if necessary disconnect vulnerable products from the network. this reflects our determination that these vulnerabilities pose an excitable wrist to federal networks and require emergency action. cisa is aware of wide spread exploitation and her supporters of the malicious actors using these full abilities to get access to target organizations in the united states and globally. in portly, once an episode gains access to microsoft exchange server, they can access and control enterprise network even after the vulnerabilities unpatched. malicious exportation could be conducted by actors with various motivation from student steve information to ask you ransomware attacks were physically damaging c

microsoft can be a long-term holding a portfolio. microsoft is a leader in the digitization of the overall economy. infrastructure spending, infrastructure spending includes technology and microsoft forefront. i'll pull back as you know, big tech tells off, they have their earnings in may, the estimates are may 5. the estimates come in at 176 earnings share but microsoft continues to evolve and i think all of the companies we are looking at in terms of galatian, in terms of concern. probably microsoft is the least i be worried about right now and again, it can coexist the reflation trade. again, lower evaluations. charles: remain areas of expertise about the global macroeconomic in the financial world, you put together as well as almost anyone i know so the world start to get its act together, vaccine dissolution smoothing out, they start to increase growth and other places, more stimulus, what are the implications for things like stock prices, particularly resulting, i know it feels like a boom time, how does it look like an hour portfolios? >> it looks very good. the problem has been the slope of money, the rush of money from growth from the reflation trade, it's pushed evaluat

these are not new ideas that microsoft is proposing, none of this was some extraordinary, brand new concept. but the difference is it's microsoftroposing. the idea of teams virtually collaborating especially strikes a chord as we remained separated during the pandemic. do not expect to be hanging out with your co—workers as a hologram just as yet but immersive platforms like this may change how we interact in the future. omar there and his new friend, the giant hermit crab! and hey, james cameron talking about underwater stuff, who would have thought. anyway, we will hear more from james cameron in the coming weeks because he has more interesting things to say on other tech stuff too. but for now that is it for this week. as ever, you can find the team on social media — on youtube, instagram, facebook or twitter @bbcclick. thanks for watching and we'll see you soon. hello. the weather is pretty quiet out there at the moment, and tuesday promises to be a fine day on the whole. the rest of the week, though, oh, my goodness, it's going to get significantly livelier. a deep area of low pressure forming out to the west at the moment

microsoft tax. this is -- mike or soft hack -- microsoft hack. this is bloomberg. ♪ ♪ ♪ alix: live from new york, i'm alix steel, with guy johnson in london. this is "bloomberg markets." if you were a 60/40 portfolio for the last two weeks, you are in a lot of pain. bloomberg's abigail doolittle has more. if you were long tech and long bonds, you were hurting. abigail: that is a good point. take a look. the s&p 500 off the lows, but nonetheless down. as you were just talking about, those momentum names, plus the nasdaq 100, down 3% to 4%. the 10 year yield up 22 basis points, but that tells us price is selling off, so you would be in a world of pain if you owned technology and bonds that influences valuation for technology stocks, bringing into question which stocks went too far, too fast. one way to look at it is the 10 year real yield. last year at one point down more than -1%, coming off of those lows, so hard to even know how to refer to that. you can see that when money got supercheap with that 10 year real yield, you have the nasdaq 100 sim

microsoft didn't know that. it was revealed, probably about the 2nd of march, microsoft themselves announced it, but there is evidence of its having been exploited back to january. unfortunately, and this is one of the reasons i suspect ncsc has —— ncse, microsoftst the people who had originally found it that were exporting it, just about every criminal on the planet then started piling income and we have seen a huge surge in activity in online criminal activity trying to exploit this on her ability since, really, microsoft announced it, which is why they're saying, please, please, go install this update now. when it comes to installing the updates, is that organisations that do that? is it individuals on their own laptops that have to do that's? no that's a very good point. this affects organisations who are running their own e—mail server number which is based on microsoft exchange, and particularly people who are running what's called 0utlook web access. so if you are using microsoft's cloud, office 365, for example, it's not a problem. as users commit really want affect you commits the people in the centre, the systems administrators, the people running the servers, if they are running a server inside the organisation, they have got to do i

microsoft has identify the group as a chinese government backed group that appears to have been breaking into providers and government computer networks through which widely used exchanged email software. microsoft has acknowledged that their cloud-based accounts were not hacked. when the chinese were asked about microsoftaming it on the government, chinese foreign ministry spokesman said on wednesday, that their country firmly opposes in combat cyberattack. they suggested in a pushback of blaming any particular nation at this point is a highly sensitive political issue. kathleen: one cyber expert is saying other hacking groups may have identified the same server flaws and begun their own attacks. what is the story there? su: a look like everything seemed to change it last week. that's when the head of the cybersecurity firm helps microsoft identify the flaws being used by the hackers. he said, and referring again to this group of hackers, they went to town and started doing mass exploitations and indiscriminate attacks literally around the world, with companies that had these exchange servers. he is saying there was no regard to purpose, size, industry and they were hitting any and every server they could. additional hackers have not been identified, or if it was the chinese group going wide to focus i

microsoft outlook. microsoft blames the attack on china. the white house says there are still serious vulnerabilities even after the microsoft patch 60,000 u.s. organizations may have been hit by the hack, including credit unions, local governments and small businesses >>> meantime, we are watching the arc invest innovation etf. it's fallen further into bear territory. now down from 20%. they include buzzy tech and growth related stock including tesla, square, roku. founder and ceo kathy woods recently telling cnbc she's doubling down on some of those bets and woods will be on "closing bell" in an exclusive interview later today at 3:00 p.m. eastern time. >> i would like to look at how far back that etf goes so you can see it go up before it comes down mike, this is more of what you were talking about, those momentum stockses unwinding but they wound up a very big name. >> it's been around several years. an amazing performer and drew tremendous amount of new money. i think that's one of the issues is not only is this -- is the fund in so many buzzy, volatile stocks but they own so much of them they have concentrated positions. they own somet

microsoft hack are coming down. around 45% of the entities that were identified as being identified as vulnerable have used the patch and plugged the risk. what we are hearing from officials is the microsoft patch is working. it is not enough. more needs to be done. those calls are being led by the cyber security and infrastructure security director who said don't just rely on the patch. if you are an i.t. manager and have been at risk, we know more needs to be done. the vulnerabilities can be scripted. allowing automation. that is a risk that is unacceptable. a lot of concern around the microsoftwas it touched so many new businesses so quickly. and by the time it was identified, there was this automation angle where the code had been written in the vulnerability through the microsoft server could be easily accessed. if you are vulnerable, you are open to further ransomware attacks so do something about it. emily: we know now the new microsoft exchange hack potentially dwarfed solarwinds. what have we learned in that scenario? ed: on friday, a swiss cyber security company revealed they had accessed the service of one of the hacking groups involved in the solarwinds hack. they did not reveal much about the identity of the hackers but they did draw a richer picture about the type of activity they were undertaking. tens of thousands of downloads took place through the solarwinds software, but they only identified 4700 entities currently targeted by this specific group. they said the group in question had a lot of characteristics that did resemble a state entity, but they did not g

microsoft's various business lines, such as gaming and cloud infrastructure? >> it would be almost a perfect acquisition for both of those lines. those are really important for microsoft. it has shown itself willing to spend big money already. it spent 7.5 billion dollars to require a game publishing company with established franchises. microsoft build out its xbox game past subscription package and discord works really nicely because it has more than 100 million users already. it is a community built around gaming. those people can be funneled directly to. game past. . discord has relied on google's cloud infrastructure for the longest time. if microsoft can position all those users to microsoft station, that's another win. annmarie: what about discord? do they need to sell right now? or do they see a positive and eager market ahead of them? what's their timeline? >> they raised funding at the end of last year at a $7 billion valuation. i do not think they are running out of cash anytime soon. much like zoom, their user numbers skyrocketed because of the pandemic last year. they see themselves in an ideal position, situation to test the market. i imagine $10 billion might even be a low figure for them and they might look for much more than that. annmarie: discord has more than 100 million monthly users. is $10 billion a barga

microsoft email software. microsoft was urging customers to download software patches after hackers in china broke into some of the copies of the software for their email contacts. there were previously undisclosed flaws. we are hearing that the u.s. government has issued an emergency warning on microsoftmises. we will have plenty more to come. this is bloomberg. ♪ shery: welcome to daybreak asia here: i am shery ahn. haidi: i am haidi stroud-watts. asia's major markets have just open for trade. our top stories, asian investors pricing for renewal about to stop bond utility after -- the nasdaq something to a two month low. china prepares to open its top economic meeting with growth and hong kong said to be on agenda. america's top diplomat called dealing with beijing the challenge of the century. asia's riches are jumping on the fast been waiting investing in companies that have taken global markets by storm. shery: japan and south korea coming online. let's turn to sophie and hong kong. sophie: risk often coming to for asia's markets this thursday. nikkei225 losing more than 1% this morning while the yen is trading around 107 following overnight highs in the dollar and -- are headed lower ahead of a 30 year option. fast retailing losing ground this morning by more than 2%. the company

the house due to sherry committee is holding a hearing with red smith of microsoft -- with brad smith of microsoft. the question is how much -- will work with tech companies about how their work is distributed, the power tech has over information streams in this nation. how much can a rep up production in the face of higher oil prices? we will be getting data coming out. we have seen it fall off the cliff and then take up. -- and then tick up. how much does that turnaround specially as opec+ faces an unwillingness? jonathan: wasn't it nice you got to that whole thing without being interrupted? lisa: [laughter] i will enjoy it for now, but sometimes i enjoy it. jonathan: you can have that back on monday. tom keene is off for a long weekend. wti at about 66. your daily average of technicians in america, to .3 million doses -- 2.3 million doses per day. it is getting better and better. lisa: the question is how long-lasting will it be? inflationary pressures are on the same trend we have experienced for a long time. is this different, though? jonathan: 1.6% is your yields in the treasury. have we fin

microsoft teams. that made it a little _ microsoft teams. that made it a little bit — microsoft teams. . what do you en'o being on the beach. what do you enjoy doing _ being on the beach. what do you enjoy doing at — being on the beach. what do you enjoy doing at school? _ being on the beach. what do you enjoy doing at school? playing i being on the beach. what do you i enjoy doing at school? playing with m friends enjoy doing at school? playing with my friends in _ enjoy doing at school? playing with my friends in the _ enjoy doing at school? playing with my friends in the playground. i've i my friends in the playground. i've heard your _ my friends in the playground. heard your teacher is very good. thank— heard your teacher is very good. thank you — heard your teacher is very good. thank you for talking to us. good luck to _ thank you for talking to us. good luck tojenny, she has got a job interview— luck tojenny, she has got a job interview this morning at ten o'clock _ interview this morning at ten o'clock i_ interview this morning at ten o'clock. i forgot to wish her good luck ear

microsoft is headquartered in edredmond, washington. president smith represents washington's ninth district. there are many microsoft colleagues and has always been a steadfast part of microsoft on a wide range of local national and local policy matters. frank i want to commend the imitation for chairman smith as a speaker today. in his role as chairman of the house armed services committee he shows global leadership, diplomacy and promotes cultural connections and diversity. it's the three core pillars are chairman smith promotes global leadership. for example he's working with the new administration to tackle national security challenges. at microsoft we know the cybersecurity threat well. this congress that chairman smith created a new path subcommittee the cyber innovative technology and information system a subcommitte which he serves on the subcommittee as well. he is also working with the other committees having previously served on the foreign affairs and the h intelligence committee to realign the national defense authorization act to reflect the 21st century globally connected world and a holistic approach to national security that is needed. he's also a strong advo

microsoft is potentially interested in buying the chat platform discord, and of course these two stories are related given the conversation among retail traders happening on platforms like discord. what do we know about microsoft's interest in discord and other companies that might be interested in making a play for discord as well? >> discord is a communications platform, popular with teens and a lot of young people. it's done really well in the pandemic. there has been buyer interest, my understanding is that there has been buyer interest for several years now. microsoftof those companies that has talked to them. we have been told that it would be at least $10 billion, most likely if they were to sell to microsoft. these conversations are preliminary, they are not about to get acquired tomorrow. they talk with microsoft, they also talk with amazon, they have talked with epic games on and off over the years. discord believes that it can go public, and they have been heading down that path. one of our sources still feels that an ipo is possible, but microsoft is almost a $2 trillion company, so if they are interested in buying discord, obviously they can pay a price that this court cannot turn down. we will have to see what happens there, but it's definitely interesting to follow these talks. emily: interesting. katie roof, lots of great breaking news from you over the last 24 hours. again, robinhood has confirmed they have filed confidentially for an ipo, the price of the shares, number of shares not yet determined, but the sec will be conducting a rev

microsoft. and microsoft, nobody considered them a contender and then they got there.ose are the types of names and technology that we're interested in. we own some of the other legacy names as well. we own cisco we think they are going to benefit as gdp growth picks up we all go pack to the office and then you have to start spending again on premise we own erickson as well. because we just went through a $90 billion spectrum auction almost double the expense people thought going in and now we have to start building out that spectrum so these aren't sexy names that have, you know, artificial intelligence or solar or, you know, biotech ore space rockets in the name. these are more legacy-type vendors but that should benefit if you really do believe the economies are going to open up and we get gdp growth at 7% or so this year which will be the fastest since 1984 oar with the facebook where you have got facebook shops, where you have 250 million users and advertising picks up as the economy picks up for google, 10-15% of their revenue is from travel, vacation, leisure, a

. ♪♪ ♪♪ >>> welcome back the recent hacks of solar winds and microsoft revealed huge vulnerabilities in microsoft'sit could get even worse. eamon javers joins us now with the story. >> some real concern here today. this was at a yale ceo conference that was moderated by jeffrey sonnenfeld this morning. a number of ceos worried about where all of this could go if these attacks get worse. we saw mastercard saying when we prepare for these types of sis cyberattacks, we're not preparing for the worst case scenario >> you need to think about the fact this is not only one sector that will get attacks, when country states come after us, they won't only come after banks or the faa, they will do the faa, the traffic light system and the hospitals on the same day. we do not do exercises across sectors. we barely do exercises with the security systems in a sector >> so that's how we ought to prepare for the next level of attack the question is how do we respond for the attacks that have already happened? we saw ash carter, the secretary of defense under president obama laying out his argument. he feels like t

microsoft ending higher after the augmented reality head set. this could be worth $22 billion in 10 years. >> it's a great deal ties into infrastructure i think microsoft, alphabet, -- i think it's a great deal. i'll also say microsofte best looking chart when you look at the consolidation over the course of the first quarter, up 6% first quarter. >> best looking turn of the market, guy, you agree >> well, i haven't looked at all of the charts on the market. but looks good to me i think you've had the pull-back from 245 down to these levels here. i think dan's right. i think the best looking thing on this show though, if i may, for a second is that nagahide vest tim is sporting, just fantastic. >> looks like wool or some sort. >> it's not naugahyde haven't wore naugahyde since the 70's. >> take the 5th. >> we're breaking down more moves when "fast money" coming right back at chevron, we're lowering the carbon emissions intensity of our operations, investing in lower-carbon technologies, and exploring renewable fuels of the future. we work hard to care for the homes we love. but it's only human... to protect the one we share. >>> welcome back to "fast money. apple shares rally on the back of call today, firm upping t

microsoft and google all really uplevel their offerings. microsoft saw its growth from 11 million to 15 million users over the course of the year, and it's continued to integrate a number of additions with hits broader microsoft. google is, of course, formidable and so is cisco. so that's one side of it but you do have the hybrid work experience we're going to come back to after the pandemic starts to end. with the j&j news, we now have three vaccines in the market you have schools reopening and kids going back to class that means less use of zoom. as work does reopen, not every company has the lukxury continue to work from home nor the desire that's why we had a 3% growth this quarter all the way down to minimal growth being forecasted by some. if that happens, i think there will be some concern but we also have to look at that exponential growth and say some of it got accelerated and now zoom has to find its new legs and how to keep growing going forward. >> all right, earnings after the bell daniel, thank you very much, appreciate your insight. >>> tyler, look at these markets. there is a lot of steam here going forward. the nasdaq now up more than 3% you've got the dow up more than 2-1/3, the s&p up more

microsoft. josh lipton with the details >> this is big news on microsoft, the pentagon is announcing that microsoft has won a contract to build more than 120,000 hololens augmented reality headsets for the u.s. army, worth up to $22 billion over ten years microsoft spokesperson telling cnbc the standard issue hololens, cost about $3,500, allows people to see holograms oversee their real environment it has found use in the commercial sector from companies like lockheed martin and airbus. interesting to see how microsoft has been winning and securing these military contracts you all remember a few years ago they secured that nearly $500 million contract with the u.s. army for headsets based on this same hololens technology of course they won that $10 billion cloud computing contract with the defense department. they beat out amazon, tied up in courts and now we have another one here, the pentagon saying microsoft has won this contract to build 120,000 holohence ar headsets worth 22 billion over ten years. back to you all. >> josh, we're seeing a reaction in the stock i have a quick question. up 2.6%,

microsoft is off of its high as well what's your answer, steve? >> first of all, i did buy a little boeing today. i haven't bought any more microsoft nor have i sold any microsoft through this that's a little unfair, that question >> no, it's not. >> because boeing is a recovery -- well, that's a recovering story unto itself. >> that's my point >> i get it. i get it i get it it's a recovery story in and of itself with the problems of the max. totally get you. two years ago this week. >> right. >> in fact, the max was grounded however, it's a recovery story it's about the economy re-opening. >> right. >> about people traveling and airlines ordering planes, which by the way they are this week. southwest airlines, i think, was close to a deal along with be some else, too just tell me let's have a debate. boeing or microsoft today. >> i have a question >> today it's boeing and as i said on the show wednesday i cut back my tech exposure and my semi exposure and have been adding and balanced out for the re-opening and cyclical trades because i think that will outperform because rates in my view are going to keep accelerating and you don't have a bell that goes off in