it makes sense that darpa is working on this-- after all, it invented the internet. is an unexpected choice-- he's not a general or a scientist or engineer, he's a video gamer. call him "darpa dan," and he says it's only right that the agency that brought us the internet find a way to secure it. how common are attacks, cyber- attacks, against the u.s. military? >> dan kaufman: it's common. >> stahl: it's common. a lot? >> kaufman: oh, yeah. >> stahl: every day? >> kaufman: every day. >> stahl: dan kaufman has been monitoring the rising cyber threat for six years as the head of darpa's information innovation office in arlington virginia. >> kaufman: the number of attacks is dramatically increasing. the sophistication of the attacks is increasing. so i... my job is not to wait for something catastrophic to happen and then say, "oh goodness, we should do something." my job is to say, "hmm, i see this trend line going. i want to be way ahead of this line." >> stahl: do you consider dealing with cyber war your main mission? >> kaufman: no. it's not my main mission, but it

the darpa challenge.hey said at the time that whoever could build a car that could drive itself from los angeles to las vegas would win a million dollars. about a handful of students and i built a car that would drive the course. >> and you did. >> this has to be slightly faster than anybody else. which gave us the first prize. >> i think that is called winning. i rode in the self driving car about four years ago. >> you remember. >> how far has it come since then? >> at this point, i confidently tell you it drives better than me. if you were to drive with me, then you would beg me for the car to take over because it keeps the lane much better, it brakes more gently. it anticipates things much faster than i can. >> would you drive in a self driving car with your family across the country? >> i have done this many times. i have a vacation time in lake tahoe and i've taken my family up many times. of course, i am behind the wheel as a safety mechanism. >> have you ever had any issues? any problems? >> of co

darpa is the pentagon's high-tech laboratory. today darpa is led by dr. arati prabhakar, a caltech ph.d. with decades of silicon valley experience. tonight she explores darpa's past and future, and her own personal journey with john markoff of the new york times.

what does darpa dan think. facebook page packed moments ago. here you go.n told this is the year of the stock picker. then why is one of the best in the business calling this the year of the haunted house market? yeah. we'll explain. today's menu. we're back after this. >> welcome back to power lunch. we are focussing on the energy sector, and the oil services name overall. just the past few moments here. we have had headlines and breaking news on hall burt orn. one of the biggest oil services company say that they will lay off between 6.5% to 8% of their global head count. this due to the challenging market environment. they did go on to say that no layoffs have occurred or are presently planned as a result of their pending abbing quization of bagger hughes. still, we're keeping an eye on those shares as well as the other big ones in the business. >> i know you do not cover halliburton, and you cannot comment on that directly. that said halliburton, one of the biggest. we've had other job cuts. do you believe there will be more job cuts and capital spendin

but clearly from that video, you saw that the darpa engineers were able to hack a vehicle, and eithererate when the driver didn't want to accelerate or to stop when leslie stall wanted to accelerate. so this is going to get a lot of attention. certainly senator markey's report and comments today are getting a lot of attention in detroit as well as around the world. >> a wake-up call perhaps. >>> coming up joan rivers' condo goes on sale today. we'll give you an exclusive look inside the extravagant apartment. the woman had taste. "squawk on the street" will be right back. i'm angela and i quit smoking with chantix. my children always wanted me to quit smoking but i resigned myself to the fact that it wasn't going to work. but chantix helped me do it. along with support, chantix (varenicline) is proven to help people quit smoking. it gave me the power to overcome the urge to smoke. some people had changes in behavior, thinking or mood hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chant

. >> it's research funded by darpa.re is something something from the robotic arm. >> you can't feel what you're touching. it feels like an instrument. >> that is where this comes in. in this video, the man with a prosthetic hand is asked to pluck stems from kerrys and failed, nine out of 15 times. >> very difficult. >> they repeated it enabling this circuit implanted into his arm. >> this is what touches a nerve. >> it sends signals to let him experience a sense of touch. >> your strategy is make sure two fingers before i pluck. >> out of 15 cherries he only damaged one. >> they're restoring natural sensation. and the sense of having your hand back. >> making parts to go inside of the human body requires a degree of precision and almost-unthinkable degree of cleanliness. this is where computer chips are made. parts are fabricated using some of the same methods. >> if you have one hair, you've destroyed the entire thing. >> the electrodes are thin because they're easier for the body to accept. they'll use a short range

. >> it's research funded by darpa.re is something something from the robotic arm. >> you can't feel what you're touching. it feels like an instrument. >> that is where this comes in. in this video, the man with a prosthetic hand is asked to pluck stems from kerrys and failed, nine out of 15 times. >> very difficult. >> they repeated it enabling this circuit implanted into his arm. >> this is what touches a nerve. >> it sends signals to let him experience a sense of touch. >> your strategy is make sure two fingers before i pluck. >> out of 15 cherries he only damaged one. >> they're restoring natural sensation. and the sense of having your hand back. >> making parts to go inside of the human body requires a degree of precision and almost-unthinkable degree of cleanliness. this is where computer chips are made. parts are fabricated using some of the same methods. >> if you have one hair, you've destroyed the entire thing. >> the electrodes are thin because they're easier for the body to accept. they'll use a short range

they have built the darpa challenge robots and complex military systems. they really make the hardware and something interesting about this model is they have a large number of research faculty that are first-class academic students and they don't teach. they need these big projects. uber can grab the best people in the world and that's the only thing i can think of where you could do something so quickly. >> interesting stuff will stop sound like they've got the right partners. uber isn't the only one interested in self driving cars. anthony foxx there with me yesterday taking a look at the autonomous vehicle. he took one for a spin will talk to us about the future of transportation and help us imagine the next 30 years of transit in the u.s. you can catch us streaming on your tablet apple tv, amazon fire tv -- we are there. ♪ >> this is "bloomberg west" and i'm cory johnson. shares of petrobras at the center of the world ever largest corruption case are rallying today. there are reports the brazilian president is seeking candidates to replace the ceo. th

maybe for darpa or nsa or the air force, who knows. there are other life forms among us, or who visited this planet? >> yes, i do. >> what do you think? >> well, personally, i have a different opinion. this whole alien concept is a cover story in order to conceal a certain kind of project. but i could be wrong. i try to be a realist, but i'm open to anything. >> what's for certain and has been authentically documented on film is that somewhere out there among the silo, underground cities, supposed nuclear waste dumps and alien burial grounds, there is a large animal and a hole in the ground. what strange beast even now is being loaded into a grave-size pit in the desert for me? but when i started having back pain, my sister had to come help. i don't like asking for help. i took tylenol but i had to take six pills to get through the day. so my daughter brought over some aleve. it's just two pills, all day! and now, i'm back! aleve. two pills. all day strong, all day long. and now introducing aleve pm for a better am. "what is it that we

the fact of the matter is we have had net neutrality from the beginning when darpa created thing, whenrs paid for this. it has created so much of the new gdp growth we have seen. a few years ago, there was a study on this and the previous five years they studied it and it had contributed to about 25% of gdp growth around the world. this is essential that we maintain this innovation and not give the power to the isps. this has been like ford and ups and bank of america and other really big companies formed an alliance to fight for net neutrality because they realize any business that does anything online needs net neutrality. cory: al franken, senator from minnesota, thank you for your time today. >> inc. you. --thank you. mark: stay with us. scarlet fu will have a check on them market movers on the other side of this break. "bottom line" continues in just a moment. ♪ mark: get the latest headlines as the top of the hour on bloomberg radio and streaming online at bloomberg.com. it does it for this edition of "bottom line." i'm mark crumpton reporting from new york. on the markets with s

. >> it's research fund by darpa. a federal agency credited with the radar denying stealth fighter.unately you can't feel what you are touching so it feels more like an instrument instead of part of the human body. >> that's where this instrument comes in. dustin tyler is asked to pluck the stems from cherries and fails 9 out of 15 times. >> very difficult. but then they repeated the experiment enabling this tiny circuit in his hand. >> this is what touches the nerve itself. >> it sends tiny experience that lets him experience a sense of touch from the artificial hand. >> describe your strategy. >> make sure i feel it in two fingers before i pluck. >> out of 16 cherries he only damaged ones. he wants to bring it to wounded veterans. >> to restore natural sensation and the sense of actually having your hand back. >> making parts to go inside the human body requires an unimaginable degree of precision and unthinkable degree of cleanliness. this is the same clean room where computer chips are made. >> if you have one hair on there, you have destroyed the entire thing. >> a hair is ten

. >> it's research fund by darpa. a federal agency credited with the radar defying stealth fighter.y you can't feel what you are touching so it feels more like an instrument instead of part of the human body. >> that's where this project comes in. dustin tyler is asked to pluck the stems from cherries and fails 9 out of 15 times. >> very difficult. felt like i squished it but i wasn't sure. >> but then they repeated the experiment, enabling this tiny circuit in his hand. >> this is what touches the nerve itself. signals that lets him experience a sense of touch from the artificial hand. >> describe your strategy. >> make sure i feel it in two fingers before i pluck. >> out of 16 cherries he only damaged one. it was such a success they are tapping a lab to bring it to wounded veterans. >> to restore natural sensation and the sense of actually having your hand back. >> making parts to go inside the human body requires an unimaginable degree of precision and unthinkable degree of cleanliness. this is the same sort of clean room where computer chips are made. >> if you have one hair on

darpa is 2% of federal spending in r & d. >> retail sector may not have shown any productivity increase because -- the quality of locating the product you want at the price you want has really improved. improved. >> productivity has been growing in the private sector. that statement this morning was off base. >> okay well -- >> in that case, it is related in a good way to the decline of mom and pops. the shift away from mom and pop to walmart has been good for the sector. >> whether the retail sector was the right one to use or not wasn't -- is do you think that given the nature of the technological changes we're going through that this won't -- on what the output actually is? >> made this point. now a couple of days ago that said we're already back 20 years ago moving. and that's you know increased and so i agree, our productivity statistics need work. >> i don't want to rely on that. i think the productivity numbers are weird especially in the face of this idea that eric and i are putting out there that we're in this technological surge auchlt i can do is fall back on the other evasio

lesley stahl talked about darpa, the arm of the pentagon. >> reporter: this is a regular new car.s there only because we agreed to obscure its make and model. kaufman has been working on this for five years with multiple research teams. >> do you want to hit the fluids? >> oh, my gosh. >> there we go. >> what's that? what's that? >> the windshield wiper fluids. >> so this is something that hacker -- >> that's right. obviously you didn't turn on the windshield wipers. >> i did not. >> reporter: using a laptop the hacker dialed the car's emergency communications system and transmitted a series of tones that flooded it with data. as the car's computer tried sorting it out the hacker inserted an attack that reprogrammed the software gaining total remote control. >> oh, my god. >> the horn. >> they can control the gas, the acceleration, they can control the braking? >> that's right. >> and they could do this from anywhere in the world. >> stop at the cones here. >> she thinks she's going to be able to stop at the cones. let's make sure he she can't. we'll have complete control of the b

senator inhofe had a chart recently from darpa that showed in 1975, it took about the same amount of time to bring a new automobile, a new commercial aircraft and a military aircraft from concept to operation, about six years five and a half, six years. today those lines have wildly diverged and the automobile is down to two years. commercial aircraft is up to about seven. but a military aircraft is up to 23 years. and that just won't do in terms -- we're going to be building obsolete technology. i urge you as you focus quite rightfully on cost to also look at how do we bring these products to market, if you will, or to opability one so we can meet the needs of the moment and also so we're not getting obsolete technology just because of the lapse of time. and i know you're aware of this. i just urge you to focus on that as well as the costs. >> i will do so. i completely agree with you. >> thank you. thank you, mr. chairman. >> thank you senator king. dr. carter, every member of this committee signed a letter to secretary hagel and secretary kerry concerning this issue that's been ra

maryland, and art d.probiker director of the defense advanced research agency known to all of us as darpa. the moderator will be laura tyson, professor of business economics at the berkeley high school and member of the hamilton project. let me close by extending particular thanks to melissa carney, who i already mentioned our director, kristin mcintosh, our managing director, and brad hershbine, the visiting fellow with visiting fellow. providing the construct of this session and putting together truly a remarkable program. let me thank the members of the staff of the amount projects who thoughtful hard work is central to everything we do at our project. with that, let me turn the podium over to roger altman. mrk . roger. >> good morning, everyone. i'll be real brief. i think that the upcoming framing remarks and the two panels we're about to have are going to fit any's description of provocative. i, too want to thank melissa and kristen and the entire hamilton staff for organizing an event as rich as this and as substantive as this. as bob said we're going to starlet start with framing

senator inhofe had a chart recently from darpa that showed in 1975, it took about the same amount of time to bring a new automobile, a new commercial aircraft and a military aircraft from concept to operation, about six years five and a half, six years. today those lines have wildly diverged and the automobile is down to two years. commercial aircraft is up to about seven. but a military aircraft is up to 23 years. and that just won't do in terms -- we're going to be building obsolete technology. i urge you as you focus quite rightfully on cost to also look at how do we bring these products to market, if you will, or to opability one so we can meet the needs of the moment and also so we're not getting obsolete technology just because of the lapse of time. and i know you're aware of this. i just urge you to focus on that as well as the costs. >> i will do so. i completely agree with you. >> thank you. thank you, mr. chairman. >> thank you senator king. dr. carter, every member of this committee signed a letter to secretary hagel and secretary kerry concerning this issue that's been ra