the nationstate in that area? and a better understanding might make us more effective in responding to the challenges that we face their quex@think that. >> i think that is possible but i think the middle east is a unique place. for centuries for centuries it belonged to the ottoman empire which loosely governed. then with the collapse of the ottoman empire after world war i the middle east was redrawn any agreement quite arbitrarily to pursue the interests of the british and the french. those -- that being said those borders are in danger tenuous, do not represent much of anything and it is a very difficult region now. unique in it's not participating basically in the european or western system, the russian system or the chinese. >> indicated that we may be moving toward redrawing some of those boundaries of boundaries being altered in the next decade? if i want of you would like to comment on that. >> i don't think that we ought to engage in that. one of the things i think we should do is to start mending our re

this is a nationstate attacking an american business. loss of profit is a big deal and a relatively new deal. that's one. the second point is yes, north korea did do this. i am quite comfortable with the government assessment and i am glad that the president said that. i would probably have tried to strike the word per portion all. i don't think we should give them comfort that the response would be proportional. i think it should be a response of our choosing. the president did say at a time and place of our choosing, but i think a word proportional gave them too much comfort. north korea is a nationstate doing destructive things, not for profit, but to coerce. these are all new flavors. and then finally, i am going to take responsibility for this because i have 39 years in government, our government is kind of feckless and our response. we are going to get around to our usual effort here, which is to beat up the victim. we will get to that directly and sony will have to answer a whole bunch of questions. >> so, you were surprised that

we know nationstates have penetrated our electric grid. some of the more capable nationstates do it so that they can be ready if there was something to happen. just the way you want to know where our nuclear weapons are, they want to be ready to flip the switch. with this new destructive attack you have a nationstate that is willing to put that much talent and effort on one company. if a nationstate wants to get in your company, they are going to get in your company. we are saying there has to be some sharing arrangement in what we know and what we can provide to our private sector. >> president obama this week announced new legislation on information sharing and liability protection. sharing information with government. >> cyber sharing bills that give liability protection, what a great idea. [laughter] >> is it legislation you can support? do you think it goes far enough? >> i have been through this many times. i think there's a lot of excitement this time. a big change is. >> once he threatened to veto your bill. >> over insufficient pr

it was an attack by nationstate. that should affect our own government calculation as to what the government's appropriate role might be, as opposed to a private enterprise out there on their own. >> can i just say __ my point was __ is a group in north korea can put together something to go against a company that has artie been hacked, imagine what a nation states capabilities __ and malicious code out there that has not been exposed to the public __ what that might be. >> you look at cataloging cyber centers. you have powerful nationstates, criminal gains, and the disaffected. i think in between __ both with iranian and north korean attacks are teaching me __ in between are these isolated, perhaps dispirited nation states who have a lot less to lose in going deep in a cyberattack. we imagine the scenario __ the chinese are turning off all the lights on the eastern target. i would allow myself to make the statement, if that were really happening in the real world, that would probably be the second or third item on t

this is a nationstate attacking an american business.oss of profit is a big deal and a relatively new deal. that's one. the second point is yes, north korea did do this. i am quite comfortable with the government assessment and i am glad that the president said that. i would probably have tried to strike the word per portion all. i don't think we should give them comfort that the response would be proportional. i think it should be a response of our choosing. the president did say at a time and place of our choosing, but i think a word proportional gave them too much comfort. north korea is a nationstate doing destructive things, not for profit, but to coerce. these are all new flavors. and then finally, i am going to take responsibility for this because i have 39 years in government, our government is kind of feckless and our response. we are going to get around to our usual effort here, which is to beat up the victim. we will get to that directly and sony will have to answer a whole bunch of questions. >> so, you were surprised that th

this is not a traditional nationstate. this is a cleric-led regime, a clerical government with the clear intent of ultimately one day unifying the entire world under their radical version of islam led by someone who believes that will only happen after he tackles and showdown with the west. -- after a cataclysmic showdown with the west. we have real reasons to believe that they will be willing to sis -- except a short-term suspension because their long-term view is, at the end of the day, they will be at a showdown point. that is why we are skeptical about this deal. we are not dealing with belgium. we are dealing with a radical cleric with a radical view of his role in the world. he wants nuclear weapons to be able to do it. i'll take anyone here would dispute that even if they agree to a short suspension, -- i don't kick anyone here would dispute that even if they agree to a suspension, you can always invent a pretext for why you now need a weapon because of the hostilities of the west, because it is time for the 13th im

we are starting to see nationstate attacks. the difference is it has changed targeting. if you are a cyber criminal looking for a bunch of social security numbers or credit card numbers, you go after the big banks and the big banks have known they have been a target for a long time. if you are a hacktivist, or nationstate, you might start going after utility company for example. a power company. these are industries that really haven't spent a lot of time, energy, effort on security. i think we are seeing the broadening of security inside the industry. >> thank you both very much. web van had choppers dancing in the first dot com boom. as in stuttgart figured out the key to avoiding local delivery? that story is next. ♪ >> i'm cory johnson, this is "bloomberg west." instacart has a $2 billion valuation. the fundraising was led by kleiner perkins. with competition from tech giants like amazon and google, and the ghosts of grocery delivery past, what makes instacart different? >> grocery shopping is getting an overhaul. a whole raft of companies are entering the grocery de

then you have nationstate using cyber as an element of national power.o we bring all the capabilities we can, how would help companies defend better and recognize is not just companies that are being hacked. over the last six months, the white house, the post office and several government agencies have been hacked as well. if everyone is being hacked, our strategy for defense is broken. and we don't have cyber legislation that lets government and industry work together. and we don't have international set of norms or deterrence strategy that we can rely on that we can put up. remember in the 60's? there was great work on developing a deterrent strategy for nuclear war. we need to take an analogous look at cyber and say how are we going to now address this? things are happening and we don't want to slow that down but we want to fix our defense the way our government works and the way industry and government work together. in the way we work with our allies. >> it raises a couple of important questions. if we liken it to nuclear warfare, these nationstates

of the reference is that alongside the usual regulation of cultural property movements between nationstates, is what can only be described as a compelling cultural rather than purely national and political consideration. in addition, the international council of museum code of ethics, in the context of museum practices rather than the requirements of international legal conventions, points the very same direction. with respect to the acquisition of collections, section 2.5 provides the following -- collections of human remains and material of sacred significance should be acquired only if they can be housed securely and cared for respectfully. this must be a car was manner consistent with professional standards and the interests and beliefs of members of the community, ethnic, or religious groups from which the objects originated. where these are known. section 3.74.3 of the code contain identical provisions relating respectively to research, and to the exhibition of sensitive materials. let me interweave american federal repatriation legislation , the international conventions, and the cod

the embarrassment factor that the corporation became the target of a powerful nationstate.vested a lot of money in going after attacks like this. it must've scared that the jesus out of the boards. >> there are certainly ongoing investigations but i will say it this way. there are a series of elements that corporate directors have talked to boards about. the sec has said that it is a particular risk factor for businesses and it is increasing the number of companies in the number of situations we are seeing in the press. and that we are having additional dialogues about it tells you that boards are getting more -- >> it talks about threat intelligence. what is the nature of the kind of threats we are seeing now. do most of them look like this? >> most of them look like this and there is the small one that is heavy with a high-impact situation. and we all experience this in a day to day life. the technique being used to deliver it actually changed last year and it went up by 250% which changed the entire modality of getting to use the user. >> don't geek us out here. it's blo

i will ask both you of you, in a sense of artist and of the nationstate and the reality of the nationstate in that area? and a better understanding might make us more effective in responding to the challenges we face there? >> i think that's possible, but i think the middle east is a unique place. for centuries it belonged to the ottoman empire which loosely governed it. been with the collapse of the ottoman empire after world war i i, the middle east was redrawn, the map was we drawn on the agreement, quite arbitrarily to pursue the interests of the british and the french had any. zbig said those borders are in danger. tenuous, they don't represent much of anything, and it's a very difficult region now. and unique in it's not participating basically in the european -- or western the system, the russian system or the chinese. >> do you think as dr. brzezinski has indicated that we may be moving redrawing some of those boundaries, or boundaries of being altered in the next decade? be the one of you who would like to comment on that. >> i don't think we ought to engage in that. one of the th

nationstates targeting sony. is this what companies should be preparing for in the new year?y expert and law enforcement officials have been discussing that question this week at the international conference on cyber security in new york. shelby holliday caught up with former fbi agent mary galligan to find out more. >> i think what we are going to see is more and more threats when we look at our mobile atmosphere. you have almost 50% of all holiday shopping this year done on a mobile device. we are using more mobile devices but security is not as good on that. i think we will see businesses restrict what you can do on a mobile device as a going to 2015. a lot of that will be driven by regulation and by companies looking at where businesses. >> we might be sacrificing our security on a personal note for efficiency, but how does that impact businesses? how can that affect businesses? >> by using a mobile device? it can affect businesses because it is a vector into their bigger network. anything that is a vector into your network is something i think you will see people pay mor

we have never seen a business targeted by a nationstate before. >> thanks for having me on today.hink it has changed. the threat landscape when you look back 10-20 years ago, people try to hack for notoriety and publicity. today, it's about money. organizations need to do everything they can to safeguard their information but also be able to react when they do experience a breach. >> what part of the legislation is best about what could be passed? >> it is a noble first step. last night, we heard the president talk about cyber security just a little bit. for cyber security to get into the state of a union is a big deal. the president has to talk about all kinds of different things going on in the world and cyber finally got the first notice that this is important. we need to come at this as a team. >> from a legislative standpoint we have some any companies in silicon valley whose businesses have been harmed by the nsa must policy of gathering information. those companies don't want to have to share with the nsa or fbi. the president is suggesting they have to do that. it would he

the biggest printers globally have been the nationstates because they are making one decision, one governmentone bank. in the eurozone it is different it makes sense to keep those decisions on an interconnected basis. so you have the banks that will presumably be buying and keeping the credit risk on the national central bank's allen seat but also performing -- balance sheet , but also performing as a whole. you have to consider that the more that the growth improves in those countries and the more the banking system and bond market is protected, the larger the risks for those countries to walk away and leave the euro. as things improve for them, the risk of leaving and having all of that written off is higher. >> let's talk about that question and just to summarize and conclude, three days later how can the details stimulate a greek exit. -- exit? >> it is once again, another game of chicken. what the ecb has the power to do is simulate a greek exit by ordering that the banks by most of the debt -- buy most of the debt, but exclude greece. if they push that can too far, in greece it could lo

mark zuckerberg is in columbia the nationstate, meeting with their president.erg is hosting his first international -- to bring internet users all over the world in undeveloped nations. why columbia? for more, i'm joined by brad stone and the ohio ventures managing director paul, in chicago. the: the olympian ski team and a tech advisor to the colombian government. we have got to talk ski team. do you want to tell us that story quickly? >> yes very quickly, about two years ago, i decided to drop everything and pursue my dream to make a living. i stopped everything in the silicon valley world and started training skiing. one problem was that i was an american. the government was nice enough to make me a citizen and i was able to go represent in those races. >> with that out of the way, talk about your involvement. >> we did make huge leaps. no one ever thought about club you start ups. a lot of stops are popping up. small funds coming out. the government had a really big role. they started a large organization coming from the top down. zuckerberg meeting with th

mark zuckerberg is in columbia the nationstate, meeting with president santos. holding his first international townhall on his internet.org initiative, the project aiming to bring internet users -- to bring internet to users all over the world. why columbia? i am joined by brad stone and paul regale in chicago. paul is a member of the colombian olympic ski team and a tech advisor to the colombian government. we have got to talk ski team. do you want to tell us the story really quick? >> about two years ago i decided to drop everything and when to pursue one of my childhood dreams to make the olympics. i stopped everything in the silicon valley world and started training skiing. the colombian government was nice enough to make me a citizen. >> talk about your involvement in technology. what is the state of the internet in columbia today? >> they have made huge leaps. a couple years ago no one thought of colombia and startups. in the last few years there has been a lot going on. there are some small funds coming out. the government has had a really big role. they

one is the embarrassment factor, the notion that the corporation became the target of a powerful nationstaterth korea is a joke in many governments. there was a new york times story yesterday. they invested a lot of money in going after attacks like this. that must have scared the beejezus out of the board that pays attention to these things. >> i think it is a combination of factors. i will say it this way. there has been a series of elements that the corporate directors have talked to boards about the f.c.c. and has weighed in and said there is a particular risk factor for these businesses and it is increasing. the volume of the attacks, the number of companies, the number of situations receiving press, and the fact we are having a national dialogue about it completely tells you that boards are getting more and more aware. >> your report is fascinating. it talks about threat intelligence. what is the nature of the kinds of threats we are seeing now? is it fair to say that most of them look like this? >> yeah, most of them look like this. then there are the small ones that have heavy impact

whether it is criminal, fbi or it's a nationstate. you cannot have companies escalate us into a crisis. so i think what the administration and what the government has put out today is in fact the correct approach. companies can do more to protect their networks and that's perhaps something we should discuss. >> he made those comments in an interview earlier today. u2 lead singer bono says he may never play his guitar again. he said his recovery from a november bike accident in central park in new york is worse than he expected. the band is expected to be back on tour with his vocal chops in may. now to the lead, hackers took sony's playstation network off-line for three days after a christmas day attack. this was the single most important days for the playstation. they were supposed to be. sony is trying to make amends giving back to customers and apologizing for the outage. the playstation plus-minus will get an automatic five-day subscription suspension with one-day offer of a 10% discount on content. microsoft's xbox was also hit b

and civil rights, she was confronting american terrorism, lynching, the raw face of the american nationstate with courage, and they ran her out of tennessee, put a bounty on her head but if it were not for the age the receiver in new york and they still let her down a new, she had to leave the country and go to britain. and she came back with the classics. i've got something to say about the underside, the night side of america. terrorism at your center called jim crow and jane crow. of course, in our textbook they call it segregation. that's a deodorize turn. we are talking an american terrorism. every two and half days and some precious black men or black woman a black child hanging from a tree. the southern trees were red with the great billie holiday singing about such power. the jewish brothers writing the lyrics. it was ida b. wells that lead that series struggle. she organized black women and the black woman school. so we need to know much more about ida b. wells, her classic crusade for justice. we need to know about how she is able to sustain her course. she's a sunday school teache

. >> other than local militia and local groups, have other powers of the nationstates try to come innd take advantage? >> i would say less come in and take advantage, but a number of regional powers have chosen sides. they are worried about spillover effects. when you have in libya essentially a civil war between an elected government that has now had to flee the capital. you have another entity claiming to be the proper government aligned mostly with islamist fashions -- factions and other powers in the region. they are worried about how that balance of power is going to play out internally. >> what is the u.n. doing? >> the u.n. is trying to propose and coal debate a political process. just this week in geneva, there was a un-sponsored eating, trying to bring together warring factions in a reconciliation process. there are a couple of problems, including the fact that not all of the powers on the ground were represented or willing to participate in the process. >> it seems to me that what you have here is isis being able to extend its authority or connection to places where it does

the future directions of nationstates matter for our national security.here will china go, what is russia doing, what is happening with north korea -- those are questions, but the chronic challenges of national security are about violent extremism flaring up, connections to terrorism, and criminal activity. so we play across all those dimensions. one example of work we are doing that is more on network terrorism and law enforcement one of our programs in the big data arena is finding -- we are working with law enforcement and with our tools, they are starting to be able to find sex trafficking networks in the deep web. we are shining a light -- >> explain what the deep web is. >> a part of the web that is not indexed by commercial search engines like google. when you do a search and think you are seeing the entire web you are only seeing what they have indexed. there is a lot that is publicly available but not commercially viable to index. in that volume, it is a vast volume, but our new program is finding ways to do cores through that deep wet and find p

. >> it is more than just a nationstate phenomenon.ay great attention as we start to see some of these terrorist organizations move along the same lines. reporter: it revealed the personal details of army commanders including personal e-mails and partial social security numbers and phone numbers, some of those numbers seem outdated. a spokesman said there did not appear to be a classified breach. >> a note of caution the votes as they cover this story and the significant difference between what is a large data breach. reporter: and the statement moments ago, they did not breach any military networks but it resembles a previous attack on a newspaper in albuquerque. the fbi is now investigating. cheryl: thank you, jennifer griffin. the white house tonight offering a rare admission of wrongdoing. the liberal national media along with several high-profile democrats planned escape what president franÇoise hollande called the biggest rally in france's history. millions denounced radical islamic terrorism is where freedom of the press. ed hen

this is not a traditional nationstate.his is a cleric-led regime, a clerical government with the clear intent of ultimately one day unifying the entire world under their radical version of islam, led by someone who believes that will only happen after he tackles and showdown with the west. -- after a cataclysmic showdown with the west. we have real reasons to believe that they will be willing to sis -- except a short-term suspension because their long-term view is, at the end of the day, they will be at a showdown point. that is why we are skeptical about this deal. we are not dealing with belgium. we are dealing with a radical cleric with a radical view of his role in the world. he wants nuclear weapons to be able to do it. i'll take anyone here would dispute that even if they agree to a short suspension, -- i don't kick anyone here would dispute that even if they agree to a suspension, you can always invent a pretext for why you now need a weapon, because of the hostilities of the west, because it is time for the 13th im

you see a nationstate like ukraine having its authority challenged as you have described here, is obviously one piece of it. the business of doing this at the same time. we are doing that -- they are doing the flexing of what i call their strategic capabilities, a number of long-range strategic aircraft flights. i mentioned earlier in the remarks, some of the exercising of strategic capabilities at critical points. there is no doubt in anyone's mind that russia is very interested in ensuring that they are recognized as a nuclear-capable state. we need to be thoughtful and clever as we approach their endeavors here. particularly their near and a broad strategy. it is more than just ukraine. as you watch the flexing and the discussion, one thing i want to emphasize here, this is not getting into some cold war race with russia. it is about dealing with it professionally and thoughtfully and using all of our mechanisms of deterrence. >> we do not know what is inside putin's mind right now, but lots of thoughtful analysts have expressed concern. the baltics have a sizable russian population. tha

these have to be larger than the nationstates you would provide. the errors here are two things centralized economic planning and industrial interventionism are necessary attributes to the political sovereignty and larger markets can only be achieved in the framework of larger states. in fact is not only possible, but desirable or economic integration with political decentralization. that after all is the promise of american federalism and almost two centuries before, adam smith wrote, quote, where all nations to follow the liberal system of free expectation in free impartation, the different states into which economy was divided with so far resembled the different provinces of the great empire. the general application would later achieve almost all that was not necessary without requiring his new order of states in the general direction would continue to be much more responsive to popular sentiment in critical debate in cybernationstate and under the rule of remote dropper season his last days. burnham's criticism to soviet society suggested he ha

the vast majority of espionage issues will be done by employees , rogue nationstates, and candidly, organized crime. we are going to try to transition to a security company. today, the people in this room have 70 security companies in their environment. that means you have none. the bad guys while to get around. you take a problem and say how do you solve it? with never given -- would've never given our sources. there are no backdoors that we are aware of. we find any government in any customer's network, we give them up immediately. it doesn't matter if it's china, u.s., or your. >> germany has been vocal about u.s. interests innovating german space. what do you tell merkel? you have a conversation, what do you tell ms. merkel? working on it. >> if you share conversations with any government leader, you do not -- >> generically speaking. >> the first thing you say if you are not part of the transition, you are left behind from the second thing is we can bring it to you better than anybody else. third, watch our track record. there is no facts about what people say. you have to earn their tru

the theory goes that it gets around legal obstacles and makes nationstate more responsible. is it is a reason for investors to say you are 19 nations on your own with only talk backing you up. had he taken the approach of risksharing that would have been a demonstration that we are in it together. some investors are going to think that is not there. >> mary sammons was making the point on whether qe in -- larry summers was making the point on the panel of whether qe and the fed worked. it only works in the beginning do we need more today? >> maybe. research from within the fed shows that qe worked. they had to change tactics too. at the end, it was only qe3. mario draghi 6 years since the fed started and bank of england started the ecb is coming around to qe. look at the bond yields, bond yields are lower in the eurozone than when qe began in the u.k. and the u.s. >> thank you so much, simon kennedy. there's a bit i'm missing. >> sounded pretty long. >> there you go. >> we were mentioning the fed. that is something everybody is going to be focusing on. when the fed hikes rat

my committee in terms of overdue with other countries what is the appropriate response when the nationstatehits our infrastructure? in this case with a terrorist organization hits our military. general? >> thank you very much, sir. to address your points, the 1st 1st one about the attack and attribution that it got into centcom this was a commercial space. there there was no compromise or evidence of penetration into government and specifically the military computer system. rather, it was a commercially facing bulletin board. anytime there is a compromise of any account it is serious business. in talking with my partners in the department of defense and the fbi last night they are investigating it and i will be getting an update later. >> we have an opportunity to work on legislation that could deal with the finding what is proportionate response. what is going to be a response from the united states of america with our companies are attacked, departments are attacked our military is under fire? with that i yield back. >> thank you. i was working with mike rogers on a piece of legislation.

it was the soviet union and the understood that we had a nationstate that wanted to challenge of america safety and the advancement of our values. we understood that. today, we have a dual challenge. the first challenges that we have countries that want to charge the safety and advancement of the united states. russia for example. they are beginning their old expansionist type of tendencies again. they took over crimea and are at war right now as we speak in this room in the ukraine. why is that? it might be because our president sent the wrong message. you might for member that conference with the russians when he was off-camera but not off mike and he said to the president of russia, tell vladimir after i am elected i can be more flexible. do you remember that? what you expect the russians to do? and the chinese, listen, we have very positive relations with the chinese in a lot of ways on trade and some matters. but the fact is, we have to be village and because the chinese and old and their armies and navies and air fares force to threaten our friends. i say to you, we have to be very

neither were the legal or political coalitions in the larger nationstates set up to resolve them quickly. that is a generational set of conflicts that i think characterize the centerleft coalition from the 1960's on. that is all i really meant. there are lots more details about that, that do not want to hug the floor. -- but i do not want to holgg the floor. >> if no one is coming up to the microphone, and we have a few minutes, i would actually like to throw out a question to my fellow panelists, which is about this idea of crisis and the distinction that kim was making in her talk. one of the things that i think is a little bit dangerous about viewing crisis only as a kind of discursive framework is the idea of, on the one hand, what is an objective crisis, and on the other hand, i think kim is cried right that people understand -- understood their world through a sense of crisis. how do you balance perceptions of the time, the way in which those perceptions shape the policies that are happening, versus a sense of, was it a real crisis or was it not? i think there is a bit of a danger

what is the appropriate response when a nationstate gets our infrastructures? and this case when a terrorist organization hits our military. general? >> well, thank you very much sir. to address the points the first one about the attack and the attribution that it got into the centcom networks. first of all this was a marshall space, a twitter account. there was no compromise and there's no evidence of any penetration into government specifically the military computer systems. rather, it was a commercially facing bulletin board as it were through the twitter account. and certainly any time there's a come demise in any account, it's serious business. and in talking with my partners in the department of defense and the fbi last night, they are investigating it with all the vigor. i will be getting an update from them later today. >> let me close, i think mr. chairman, we have an opportunity to work on this committee on legislation that could do with defining what is proportional response, how other countries should respond with us. what is going to be the respons

lawyer, cybersecurity is always a defensive measure, and so every day there are new ways either nationstates or individuals can't attempt to infiltrate whether it's governmental, business, or personal accounts and technology. i think the important thing in the ptc realm is that the data transmissions and the communications networks are encrypted with state-of-the-art encryption. certainly the messages are sector is anything else we are able to transmit today. the other thing i do think again it's important to note where you talked about technology coming in and taking over control of the train. the only interface of ptc is to the braking system. there is no throttle control by the system for positive train control. the failsafe mode for positive train control is to bring the train to a stop. >> in your opinion on if anybody else would like to address the question, please feel free to. in your opinion is there adequate time to provide the kind of testing you are pairing out? >> no, is the answer. sorting out against a december 31, 2015 deadline. the security element, the safety elements of be