let us get to jordan robertson from washington. reporter: a special unit from -- ahina liberation army

when jordan robertson's article comes out, we are not moving on. think anyone a shock to there is chinese corporate espionage. concern. we all worry about our accounts being hacked. tom: that is not in the article. >> that is part of the broad discussion around cybersecurity. i think there was an article in the wall street journal or new york times about banks in the u.s. seeing a ratcheting up of attacks against them. the cyber world and wars will be continuing for a while. tom: there are costs to the economy. you have been one of the arch optimists come always out front, glass half-full. we are way over half-full. againmake america great come a morning in america, and all that. when do you say enough? >> it's always darkest before the dawn, they say. times can't get that much better. tom: how do you change or call at imufg? when have had times unemployment is extremely low. we have kind of reach the endgame for the economy. everyone has a job. it is hard to forecast at the moment because the unemployment rate is low. because the unemployment rate

joining us from washington is the author, jordan robertson. terrifying because if everything is true and the story and these microchips are in servers, that is within the corporate complex and the military complex of the united states, and china could possess everything from intellectual property that the u.s. produced in the last 10 to 20 years. this storyh rest of is that 2014, 2015, as we military the chinese inserted malicious microchips into the server motherboards of servers going to major u.s. companies, including apple and amazon. the real danger as you point out is that these malicious microchips activate permanent infections that you cannot get rid of on your computer and you will not even know about it most likely. the only way to clean the infection is to get rid of the machine. a have created all -- they have created ultimately a backdoor between -- into companies. the chinese military hacking apparatus has taking a big step forward in terms of capability of altering and tampering with thatter hardware in areas very few people out

jordan robertson, the author of the story. who have not had a chance to read the entire piece, bring us up to speed. oforter: the high points that these are in 2014 and 2015, u.s. authorities and major discoveredmpanies discovered hardware manipulation involving a major assembler of server circuit boards. think about this as a permanent infection on a motherboard. we know what malicious software is and malware is, imagine if you embed that in a chip and then you embed it on a motherboard. up,y time the server boots the malware a shot into the heart of the operating system creating a stealth backdoor into any protective systems. we reported that amazon and companies some of 30 that discovered the malicious chips. david: i don't remember hearing about the hardware infiltration as opposed to software? reporter: some news has come out in recent years about certain supply chain attack including from china, this is the biggest that has been described. the most significant supply chain attack against american companies. this was a le

emily: jordan robertson and steve, thank you for joining us. bloomberg has found no evidence to suggest they have been -- beend in the affected by anything in this report. this is bloomberg. ♪ emily: the trump administration released guidelines for testing autonomous vehicles. drivers no longer need to be human. the transportation department's guidance will no longer assume a commercial vehicle driver's human. toically, an initial step allow trucks to travel across stateline piloted by an autonomous system. the department of transportation already has the authority to set safety standards allowing for innovative automated vehicle design. to talk about this, i want to bring in gary peters of michigan who introduced bipartisan legislation to advance self driving cars. first of all, what do you like and do not like about these new guidelines? >> i think the guidelines are pretty clear that we have to make sure we have a framework to allow this technology to continue to move forward. existing vehicle safety laws do not allow an automobile without a

let us get to jordan robertson from washington. rdan: in 2014 and 2015, a specialized unit of the chinese people's liberation army implanted malicious microchip. what does it do? think about it as a permanent infection in the hardware of a computer. this is the ultimate hack. -- the ideal hack. every time the servers boot up, the hardware, the malware loaded in this malicious chip injects itself into the operating system and infects the computer every time the computer is turned on. it is the ultimate attack. it was found inside computers used by amazon and apple as well as dozens of other companies. jason: once they are in a computer like that, what can happen? jordan: our first tip came during the obama administration. both the obama and trump administration have been deeply concerned about this issue of supply chain security. what happens is, once you get inside a computer, we thought it must be about theft of consumer data. apple was hit. the siri division was hit. china must want siri user data. we were quickly corrected. by se

bloomberg's jordan robertson there, and mcafee's steve grobman thank you for , joining us.e should let you know bloomberg lp has been a super microcode -- customer, but has found no evidence to suggest they have been affected by anything in this report. this is bloomberg. ♪ emily: the trump administration released guidelines for testing autonomous vehicles. one big takeaway is that drivers no longer need to be human. the transportation department's automated vehicles 3.0 guidance will no longer assume a commercial vehicle driver's human. basically, an initial step to allow trucks to travel across state lines piloted by an autonomous system. the document asserts the department of transportation already has the authority to set safety standards allowing for innovative automated vehicle design. to talk about this, i want to bring in senator gary peters of michigan, who last year introduced bipartisan legislation to advance self driving cars. for joining much us. first of all, what do you like and what don't you like about these guidelines? senator peters: i think the guideline

emily: jordan robertson, thank you. and samm, thank you as well. you can enjoy the full story in this week's addition of bloomberg businessweek. bloomberg lp has been a supermicro customer but has found no evidence that bloomberg is affected by the issues in this article. did elon musk put his recent settlement with the sec at risk with his recent tweets? we will discuss. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ emily: well tesla seemed to have quelled investor fears earlier this week with its production numbers, the good news was short-lived. shares plunged after elon musk went into overtime with more than one dozen tweets targeting the sec and short-sellers. in one post he mocked the sec saying "just want to say that the sec is doing incredible work and the name change is on point." he then continued his tirade tweeting short-sellers are value destroyers and it should definitely be illegal. this comes less than a week after muska settled a

let us get to jordan robertson from washington.eporter: a special unit from -- ahina liberation army malicious microchip. inc. about it as a permanent infection in the hardware of a computer. this is the ultimate hack. an ideal hack. every time the servers boot up, the hardware, the malware loaded in this malicious chip injects itself into the operating system every time the computer is turned on. it is the ultimate attack. it was found inside computers used by dozens of companies. host 2: once they are in a computer like that, what can happen? reporter: our first tip came during the obama administration. both the obama and trump administration have been deeply concerned about this issue of supply chain security. computer,et inside a we thought it must be about affecting consumer data. china must want siri user data. we were quickly corrected. the reason china would go through the trouble, the expense come of the time of engineering these motherboards in this way is for long-term access to sensitive networks. it is about corporate

we will monitor and move forward on this story from jordan robertson. alberto is with us.ing at wealth and fixed income. without question, the interview of the week on economic theory. john williams with michael mckee, this is must listen must watch for anyone in economics. please stay with us from a yankees/red sox. ♪ tom: from london and from new york, we need to translate for our global audience here. it's not like my childhood. tear down this wall, that is the green monster in boston. for those of you on radio, good morning in boston. are in aes and red sox three out of five game series. this is like religion. this is a huge deal for these two stadiums. don'tne: a lot of people know what you are talking about because we have a global audience. for the americans watching, we care. go yankees. tom: what do you mean go yankees? yesterday, the populist coalition said they expect gdp to rise by 1.5%. italian newspaper reported mario draghi may have discussed the budget with the president. manager is still with us. the concern if you are on the market is italian bond yields

government and major companies including apple and amazon that's according to a report by bloomberg's jordan robertsonl riley. riley reported that chinese spies planted tiny chips like this one into server mother boards in an effort to snatch intellectual property and trade secrets. but those involved are vehemently denying the allegations. a spokesperson for supermicro says we remain unaware of any such investigation apple said it has never found malicious chips. amazon also denied any issues relating to modified hardware. but the bloomberg reporters say they stand by their story. a hardware attack of this scope could mark a major threat to america's supply chain which is dependent on china nbc news >> okay. joining us right now to make some sense of what's going on here, george mason university's national institute founder here. help us understand i want to understand the threat this all poses but who do you believe at this point? >> it's really hard because you've got a well sourced bloomberg story with 17 different sources. all anonymous, it's worth noting but two very security conscious companies