we operate in the air, space, and in cyberspace. for any new challenge that we might encounter, in may be the not correct answer that requires a new plane or new munition. maybe there are ways to leverage cyber in order to address the problem. we have to open up on reince much more to what we are calling the multi domain approach. as i conclude, the bottom line myt would give you after first seven months on the job -- our air force is in good shape today. we are feeling some strains. the future depends, i think in large part, on how well we plan and execute some of the things we have talked about today and how well we do that consistently over the years. we certainly hope and expect and continue to work with congress to help us in this regard, to support us. we will continue to talk about lifting sequestration and protecting readiness. i want to thank you for your time today. i will yield to general walsh. >> thank you for being here. it is a fastening time to be in the u.s. military and it is always a good time to be an american ai

the interesting thing is that it is very hard to tell who does these kinds of acts in cyberspace.s that jpmorgan was telling other people, these are experts, consultants it was bringing him to control the security crisis. it was telling them it was not just russian hackers but that they were state-sponsored. that can meet all sorts of things, it does not meet its actual russian guys in army uniforms. they could have gotten a hand in things. a.m., i expect you break something else on this story by 9:00. our twitter question of the day, should the u.s. engage in cyber offense? tweet us, @bsurveillance. >> assuming that the russians engaged in cyber offense. geopolitics, u.s., russia, sparks joins us from the eurasia group. we'll be right back. ♪ >> good friday morning, bloomberg "surveillance." a week from now, the jobs report. we will go but need the data. scarlet fu and brendan greeley. the morning. must-read.morning paul krugman and "the new york times." always a conversation starter. krugman on france, he disagrees with the gloom. how do you pronounce it? germany is in corrigibl

brooks on twitter and there are jews in cyberspace and i have two questions for you and my question for brooks has he tried writing comedy on twitter, is it hard for him to write jokes in 140 characters? >> it's a good question and you're right. it's impossible. you know the only way there is no way you can get lucky but it's too restrictive. 140 characters is not enough, it's like eating with chop sticks, it can't be done. >> well, riner does it your best friend with 60,000 followers and he out teats you 50-1, you have some catching up to do. >> all right, you know, i never thought, you know, i never thought that tweeting was that important because the tweets that i have read basically have been i just had breakfast and just went to the toilet. i mean, you know. they weren't that exciting. >> speaking about twitter, shocked please ask mr. brooks who he follows on twitter and mr. brooks i will ask you shamelessly can you follow lisa and i after today's show? >> i will. i will. i promise you, for three or four twitters and after that i will probably drift away. [laughter] we actually had

and this is where it's going to be taught is in cyberspace.spitals, medium-size businesses, getting serious about cybersecurity because there's a lot of us care. >> i don't want to know what your medical records show, but there could be someone out there that does. are you concerned? >> yes, i'm concerned about cyberterrorism in general. look at what it did to the iranian nuclear facility and that was just her a computer ane are able to control as much as we can, were not going to be attacked by random terror events, cyberwise i'm ago, someone with a lot of money can do a lot of damage in the united states and that's where we need to be spending our money and that is where we are the most vulnerable. so issue number three, bank of america paying $17 billion. why is no one in washington pointing out that even president obamacome in the office once on people who cannot or them and for those who don't know, he is now the governor of new york and here it is the man who says he gave birth to the mortgage crisis. he pushed housing on people that cou

read a newspaper you couldn't delineate the difference between a web hack, which is graffiti in cyberspace and more so first indicated computer attacking. so we have have to get a little more clarity. in terms of what we're most concerned about. you can't mirror image our adversaries. at the top of the list would be the russias, the chinas, the united states. some much our allies. but by and large their intent, unless escalating in a military sort of situation, is not to take down an attack systems unless their threatened. something happens in the gulf, maybe that will trigger something out of china something happens in a nato country, maybe that will force the russians to turn to computer network attack. by by and large it's exploit. they're in business of tallying secrets, which matters. it matters. those are our jobs, that's our en novation that keeps america going forward. and it is vulnerable and it's being stolen at humid, huge amounts like that. if you're in the chinese mind, what would defer you from not engaging in this? why not use the money saved toward marking products. if you

the things we know now is that the way the white house has kept the decision to strike back in cyberspacecyberattacks at a very high level, it has to be done at the level of the secretary of defense or the president. what he's talking about is something that might happen in the future, that the nsa has been worried for my that the white house has been worried for a long time about what the administration calls attacks at the speed of light. these are cyberattacks where there is no warning at all. it is not like even a missile were you've got 15 minutes to make a decision and decide a counterattack. this can happen literally in microseconds. apparently, what this program is designed to to is provide one answer to that threat, to scan traffic automatically and automatically create a response. right now, the way the presidential authority works, you couldn't do it but it raises the possibility that you could do it later. >> you wrote a big article about the foreign attack on nasdaq. it took years in government to understand. how realistic is this type of technology? >> it is realistic in one

i want to talk about another important form of security, keeping your data safe in cyberspace. there has been breach after breach in the last year or it that target impact impacting as many as 100 million customers this week. russian hackers stole 1.2 billion user names and passwords. it is not just data being swiped. at the 17th annual black hat security conference this week, hackers and showed how to break into everything from airplanes to webcasts. what new threats did they reveal? studiohnson here in the and with us, david kennedy, who has been at black hat all week long and is now gearing up for the devcon conference, another security conference in vegas this weekend. he joins us via skype. hacking an airplane? is that possible? >> it appear so. there is a security researcher ruben who looked at the in-flight wi-fi, which is what allows you to communicate with your laptops. normally the systems are supposed to be independent and separate. unfortunately, it looks like they put the communication [indiscernible] on the same as in-flight wi-fi and you can hack into the system,

we have environmental issues, obviously, cyberspace, space, but we have to retain our sovereignty and have to make sure we support our allies doing the same thing. this is a very confusing world, and we can't reduce ourselves to being transactional and reactionary. i see a lack of strategic thought or vision of our role in the world and our ability to lead and to build partnerships to deal with the issues. neil: do you think, general, and i've heard this from michael bloomberg when he flew to tel aviv when we were preventing commercial flights going in and out of there during the original uprising. and he said israel is simply protecting its borders. and we should respect that. what do you think of that? >> well, obviously, israel has the right to defend itself. i think what we have here is, you know, hamas is constantly threatening israel and drawing them into these kinds of conflicts. hamas fully understands what's going to happen when israel retaliates for the attacks. in a place like gaza that is so packed and loaded with people in such a small urban area. they use the human shiel

instead the kids are immersed in cyberspace, subjected to all kinds of pernicious behavior that in thethey could not access. the cold truth is is the american society is growing hatker. trend, anyone who points it out is demonized by the liberal media politically we are a divided nation. congress rarely solving vexing problems because both parties are trying to destroy the other. the right sees president obama as the devil, a man bent on destroying america. very personal. the left screams about income inequality when its own policies are downgrading job development and failing to help the poor. that means more dependence on big government which is only too willing to provide excuses for individual failure. thus, the have notes demand more from the haves because somehow they are entitled to other people's money. and the obama administration stokes that fire. rather than laying out a road map of self-reliance, liberal politicians and the media encourage social justice and income redistribution. millions of american workers are buying into that, signing up for disability payments at a rec

you cannot delete cyberspace. it's very difficult to do.not be on the server or hard drive, but these e-mails exist somewhere. they have to because they were sent. they were received. they were forwarded. they were replied to. you would have to delete everything everywhere. it's like deleting something out of a google search. it's very tough to do. >> one of the sworn declarations was from an irs tech guy who took out the hard drive, opened up the hard drive and saw what he described as scoring. concentric scoring i think was the term he used which is basically a circular gouge that was made on the platter, the disk on which the information is stored. that's fairly common, is it not? when your hard drive crashes, that's typically what happens, right? >> and if you've ever been a victim of that, you just hear that grinding, you know something has gone wrong. but the real question on one of the declarations, and one of the reasons for the judge's order, somebody said they saw a scratch. a scratch is not scoring. if you saw a scratch on a hard

just to give you an idea, my group, we monitor threat activity throughout cyberspace on a global basis and we're see being 650,000 attempts to hack into computer networks in one minute on average. and that's globally but you look at the u.s. and that number is not that much smaller. so there's a lot of attempts out there. the good news is a lot of these attempts are blocked, but, of course, when it comes to targets, some attacks will get through to their target -- to their victims, and at that point like i said when it comes to the game of security, it's not only beefing up your defenses so you can stop these attacks but also taking the proper analysis and reaction, refactoring, learning from them and so forth, too. >> all right. derek, thank you for joining us. derek mankey. 650,000 attempted attacks per minute on average. that's staggering. >> it's impossible -- my takeaway is you can't stop this, right? so if you have someone that wants to hack in, i think they're always getting in. especially when we're talking about another country. we do it to them, they do it to us. it's a round

russia has a history of using hackers in cyberspace as alternative troops. we saw it in estonia and georgia. it's a tough question to answer m&a take weeks or even longer but there are certainly a lot of that there is a government and in it. >> thank you so much. let me get to breaking news -- overseas then you'll enter into exclusive talks with telefonica on gvt. telecom italia offered $9.2 billion for gvt and moments later spaced telefonica vucevic's earlier bid to $9.8 billion. vivendi will enter exclusive talks. coming up, the campaign-finance stance on how candidates talk to the money men who run the super plus, ford shifts gears and starts making a version of its iconic mustang to sell overseas. much more on "in the loop." ♪ >> new jersey governor chris christie has had a busy summer. he is raising money across the country for fellow republicans and appearing on "the tonight tradeand preparing for meetings in mexico next month. is he preparing to run for president? officials are looking into politically motivated traffic tie ups at the gw bridge and he

speaking with the financial times, he said the next financial shock will come via cyberspace and a moreeffort to tackle the problem is required. recent high-profile attacks to big businesses included a breach at u.s. company target where millions of customer data was stolen. >>> the playstation network was taken down by a denial of service attack, although the tech giant says no information was accessed. the report says the group lizard squad reportedly carrying out the attack. and the sony entertainment president was on a flight that was diverted because of a bomb threat. nobody was hurt on that flight. >>> and a press conference is happening in spain, the second day of his visit to meet with the spanish prime minister. angela merkel says this is affecting the german economy but expects good growth this year. scheels also saying the german economy is less dependent on countries like spain. that press conference is still occurring. we'll bring you more flashes of what they are saying throughout the rest of the program. see you on the other side of this short break. xkç >>> hi, everybod

see if you can find the exact same hotel the exact same night cheaper in cyberspace. >> hawaii woulddeals with the hotels. in addition to that, there are certain sites that allow you to find what they call hidden prices or unpublished prices. >> what are these hidden rates and flash deals? >> in general, hotels want to fill most of their rooms with people paying the regular price. if you're welling to do a little bit of extra work, you can save a little or a lot of extra money. for example, getaroom.com has a very strange thing where if you call them, they will often give you a better price on the phone. i saved 20% off a paris hotel room by picking up the phone, which seems very old-fashioned. >> what's the conversation? you call them and get them on the line. what do you say? >> that's a whole other process. once you find the room you want, you go call the hotel itself and say, hey, i'm looking at a room on hotels.com, bookings.com, do you have a discount to give me directly? it's in their interest to say, sure. these hotels pay 20 to 30% commission to the sites your booking throug

you know, basically picking the lock of the front door of the bank in cyberspace. once inside they unleashed what appears to be custom-made software. >> this is an extremely advanced attack is what you're saying. >> right, right. i compare it to the oceans eleven of cyber attacks. it's not a smash and grab. people that knew what the inside of the bank's technology infrastructure looked like, knew where to go and they basically tunnelled into, you know various data sources and began slowly siphoning out data over the period of about two months. jpmorgan discovered it earlier this month. >> what about jpmorgan though. they sthad were going to protect their customers. what can they do if they've already spent the money? >> jamie dimon, president of jpmorgan has talked about this a lot. it's been a big worry of his. they've beefed up security. they have about a thousand people working on it. he said, look this is an issue they deal with just about every day. obviously someone's always always trying to steal someone's identity. sometimes the bad guy's going to win. it d

russian market, the united states's market and chinese markets are not working well together in cyberspaceey arrest them, but i want them to shut down the server, and i believe the government, like israelis, are capable of doing that. my question is, what will it take for them to get on with the job and simply shut them down? >> well, this is the point i'm making, simon. it's difficult to shut them down because the servers they operate in are in russia. it's a difficult process for our criminal agency in the united states like the fbi and cia to shut them down and takes collaboration between nations to do that. what happens is these groups operate. they have been operating since 2011. they will continue to operate. until we come up with better governance models, better cooperation, we'll see crime groups and nation states continue to operate successfully. >> what we know on the hack, what do they want? >> well, they want personal identifiable information. that identifiable information is credit card information, password information, username information to sell on the cyber black market.

. >> still ahead, sexism, in cyberspace, who is, most likely to be bullied on line. men or women?r is i think will surprise you. well, probably many. >> yes. >> but first, i love this show. >> it goodies. >> airplane repowe, back for another season, and one of the stars of the show is here, do you know why he is here? because he lives in philadelphia. this is a scary job. >> yes. >> ridiculous. >> we are not happy to see you no, i will steel your plane. >>> it is 8:29 or will be in 32nd. hurry up and do weather and traffic because i want to you meet ken. >> all right. >> beautiful day. back to you just kidding. we do actually have a beautiful day. it is a ten as our weather by numbers will show you. cool morning giving way to a warm afternoon but low humidity but it will feel good. bus stop buddy, outside in his last week of vacation here temperatures in the 50's and 60's but they will warm up. it will be a pool afternoon later today. sixty-four in philadelphia right now. ben franklin bridge in the background there, clear skies, all they we have had reports in the the area of earl