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tv   Bloomberg Technology  Bloomberg  February 25, 2022 5:00pm-6:00pm EST

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>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. emily: -- caroline: i am caroline hyde. coming up in the next hour, u.s. secretary rose for a second day, as economic data and some hope surrounding russia's war with ukraine started to impact
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investor choices. we will bring you the latest in terms of the market move. the growing cyber threat out of russia as ukraine's institutions were attacked. how big of a risk is there for the west? more on that later. the amount of misinformation spreading online in the wake of russia's invasion is growing. how platforms are handling their role in the war. we will get to all of that in a moment. first, this prospect of talks between russia and ukraine have been cast more hope than doubt. the kremlin saying he has stopped responding after rejecting moscow's offer for a meeting in minsk, belarus. annmarie holden is here with more. in an odd way, the market seemed to grasp onto this hope that there could be talks between ukraine and russia. tell us about the real truth here? annmarie: if there were to be, the timing and location would be important. russia decided they would like to hold these topics in minsk, belarus.
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that is not going to happen given the fact that russian troops are allowed to stay in belarus and use that as a base to invade ukraine from the northern border. the belarus border to the capital of kyiv is about two and a half hours or three hours, depending on which side of that river you drive upon. this is going to be incredibly interesting if these talks were to happen. one thing on the table that president putin wants is a veto on ukraine joining nato. basically neutralize new -- ukraine in terms of whether or not it would join nato. ukraine has constantly said they want to maintain that path to nato membership and keep that door open. caroline: meanwhile, the next fc will be paying attention to as we head for the weekend. we have had so much of a global narrative. china weighing in. we have looked into other leaders. what next in terms of next steps for you? annmarie: today was really about upping the sanctions against russia. we saw that european capitals as well as the white house confirming an hour ago, jen
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psaki talking about the fact that they are going ahead with sanctioning sir gayla -- sanctioning sergei lavrov and putin. this is largely symbolic, given that the assets are scam. what is going to happen for the weekend is going to depend on what happens on the ground in ukraine. i imagine if there is anything on the diplomacy front, there will be a lot of phone calls, but they will probably wait until monday, to see if there is upping of the risk or potential penalties for russia when it comes to sanctions. caroline: anne-marie holden, one of the busiest women out there, we hope you managed to get some rest. thank you so much for that. the conflict in ukraine has been top of mind all week. investors taking a breath ahead of the weekend, may trying to reallocate amid what has been a significant selloff during thursday's trade. ed ludlow, you have the friday moves. ed: i think you are right to position this as hope rather
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than substance on the talks between ukraine and russia. a lot of green on the screen. the s&p 500, up 2.25%. the biggest jump in a month. and almost makes you forget the volatility of the week. such big declines over tuesday, wednesday, thursday sessions because of what we saw in ukraine. the nasdaq 100, very tech heavy. underperforming. don't forget, traders are trying to make up their mind where we stand with the fed. the u.s. 10 year yield at 1.96%, has been a little higher -- a little higher. softer by a basis point. a lot to consider going into the weekend. but a sigh of relief which is interesting. i'm going to skip ahead to semiconductors. semiconductors is an interesting one. a big focus of the sanctions package was restricting access to technology for russia. semiconductors being a big part of that. we underperformed in the s&p 500, still up 1.6%.
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those are willing to discuss it, semiconductor company saying if it supply is not going to rush, we have a long line of customers waiting for chips, we are going to send it somewhere else. nvidia, coming up with a statement saying they have to have some kind of hack to their internal systems. the stock rose in friday session come up 1.7%. ford up 4%, despite idling one of its most profitable lines in kansas city. shortage of semiconductors. let me talk about dell. 24 hours ago, we were so focused on russia-ukraine. this is dell over the last six days. six straight days of decline. earnings in the fourth quarter thursday night. a weak profit outlook because of supply chain disruption. they cannot service demand. i'm going to be mean, i know i should not do it on a friday, but let me read to you this long list of superlatives. the biggest drop since april 2020 since friday. it was facing the biggest drop on record.
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the stock is at its lowest level since september. this run of six days of declines is the worst streak of declines since october of 2020. something clearly not going right for dell. such a legacy name in the world of technology. you might have missed that one with everything going on in the world. caroline: well done for shining a light on it. there is plenty we are missing amid a turbulent time in geopolitics and the markets. ed ludlow, we thank you. let's get more insight on the tech sectors. remarkable moves. in the beginning of this week, they said the situation in ukraine could not have come at a worse time for tech. then the bounce back. what is this? we have seen so many bearish bets put on, so many shorts already that we see the bounce back now? >> i think it is the most oversold that i've seen tech stocks in the last six years. and i think that is essentially what is playing out here.
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i think it was oversold in terms of tech. now you are starting to see a bounce back. it is going to be a slower fed hike. that is starting to get factored in. it is oversold in terms of tech. that is why we saw the bounce back. caroline: if we started to reassess what happens march 16, we don't think we will get a double hike, a 50 basis point move, start to taper down expectations for 6, 7 rate hikes, who wins in the tech sector? dan: i think it is a combo. you have to look at this, the large caps will be safety. things like microsoft, apple, intel, cisco, you see more and more rotation toward tech. when you are starting to see more of a risk on, given the tone in the water. then you look at cybersecurity. i think some of these cybersecurity names, in my opinion, it will be the sector of tech that outperforms the
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most. not just because valuations, the overall growth, you look at the ukraine situation. names like powell -- palo alto, among others. that is why this is one. you going to the weekend, despite the horrific situation in ukraine, at least from a stock market perspective, tach feels like that oversold, and i think we are starting to put in some sort of bottom in here on tech. caroline: interesting. your perspective in terms of the allocation to big tech as a haven or not, do you think it rides that wave in some way, or is this really about trying to understand the valuation element to at all? dan: i think part of it is valuations are oversold. from the beginning of the year, we see most tech down 20%, down 40%, 50%. relative to growth, it is some
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of the most attractive valuation we have seen going back to 2015, 2016. when you look at overall growth, which is important, that is not changing because of the situation here. when you look at overall tech, that is really want is resonating with ambassadors in terms of these levels. caroline: lastly, what has been overlooked is some of the idiosyncratic news, m&a news. are we expecting fewer combinations here, consolidation here, is there still plenty of opportunity to be had when we are thinking of those sorts of eventualities to get into certain tech names? dan: i think there is going to be acceleration in m&a, because of what you are seeing from the oversold names from a valuation perspective. things like microsoft will be aggressive when it comes to areas like cybersecurity. think you will see strategic m&a and financial. this is something that is behind the scenes.
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you have a lot of investors focused on which some of these oversold names you are looking at. a lot of them are like cybersecurity. some of the cloud names in particular are way oversold. caroline: dan ives on the technicals, we thank you so much. he has been a fountain of knowledge when it comes to checking on what is in the bloomberg terminal. coming up, the growing threat of cyberattacks with a buy into the stocks. what about what is happening on the ground? russians -- could we expect a global warfare here? we will be talking with mandy and founder, sandra joyce. that's next. this is bloomberg. ♪
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>> you don't have to move tanks. you don't have to moon armies -- move armies. you could just use your keyboard, which you think as an active art of war in an a symmetric manner. it is also something very difficult to move back against. if russia strikes us with a cyber blow, what is the u.s. going to do? that is definitely what is considered as an excellent use of his arsenal. caroline: that was former u.s. assistant secretary for homeland security, matt hayden, talking about the threat of cyberattacks from russia. not just on ukraine but here in the west. let's bring in mandiant head of global intelligence, sandra joyce, to talk more about that. the most phenomenal resume in terms of the amount of masters degrees you hold in international affairs. talk to us in the here and now, what you are telling your
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clients, how worried they need to be. sandra: what we are telling them is they need to be prepared, but not to panic. the fact of the matter is that russian cyber aggression has been going on for many years. and a lot of the preparations that organizations are making for ransomware and other attacks are the same preparations we are asking them to make today. caroline: any industry groups more vulnerable than others, or that you feel could be under greater threat than others? sandra: the risk of reciprocal action against, or cyber action against u.s. businesses, the risk of that does go up with the allocation of sanctions. when we are looking at reciprocity, a lot of the sanctions are based on financial effects. we might expect to see some action against the financial sector, but it would not just be limited to the financial sector if it were to happen. that is because cyberattacks can create fx across all industries, and that is really what i believe the russian aggression is about. it is about creating fear,
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doubt, uncertainty, and that is going to be very powerful if they can actually get that done. caroline: fear, doubt, uncertainty was increased in ukraine amid not one but two cyberattacks. there seems to be more dd os distribution, inability to communicate with their front lines. i'm interested in what types of attacks you might see in the ukraine, but also perhaps closer to home? is it that sort of attack or more ransomware that we need to fear? sandra: what we should think about is what is the effect the russian government will be trying to get? they could use a very low sophistication technique, but what is accompanying that is things like text messages. we saw this in ukraine. text messages going out to banking customers, telling them the banks were down, that they would not be able to get their money. that is an effective that is psychological. i think what we will see from the russian playbook is a
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psychological attachment to any of the cyber actions they are taking. trying to drive down the resolve of the people. the application of sanctions and their effectiveness is really driven by the willingness of the people to support them. and if russia can get the target population, whether it is in ukraine or elsewhere, to start doubting their government, to weaken their resolve, they will have achieved the effect they are looking for. caroline: give us as a consumer but also the clients you speak to a quick one on one of what we should be looking for, how we should be acting in this current environment? sandra: what we need to be doing is looking for anomalies in our networks. we should already be practicing cyber hygiene. run that playbook. if you know that you will be taking action, separating networks or segmenting them, who is responsible for that? is your general counsel part of your tabletop exercises? if not, they should be. a lot of this will require a
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connection to your pr or media relations team, because if you are a target of significance, there certainly is going to be a lot of messaging around that. you can expect things like to face men's or a narrative to come out that could be completely fabricated. really, what organizations need to be doing is to prepare it in a way that they would be preparing for any ransomware attack, or any type of other breach of their network, get the playbook in place, and then remediate and press on. . because our resilience is very important here. is essential not to panic. companies get breached every day, and they do continue once the remediation is complete. caroline: we talk a lot about defense. but i feel like we started for the first time to hear about the administration, to talk about others when it comes to cyber attacks to a certain degree. what do you think could be deployed to be able to take it back upon russia, in some way?
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sandra: the u.s. military has every option available to them, and it does not need to be a cyber response. in fact, if military action were to come, there would be quite a few different options. one thing to remember is there are multiple instruments of national power. if the united states decides that it is going to go on offense, it can go on offense in many ways. diplomatically, economically, even within the breadth of military tools, there are low level things that can be done, all the way to some of the more sophisticated attacks that could happen. really, it is not about the mode and mean of it. what it is is about the effect. what effect do you want to reach, and how is the most efficient application that you can put out there to gain that affect? caroline: quickly, the people -- well, the places these attacks are coming from, is it becoming
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easier and easier to identify quickly? because that seemed to be the case, to ensure we knew that these were coming from russia, even though if it was not from the government itself. sandra: we do know quite a bit about the russian threat in cyber threat apparatus. over the several years that they have been conducting attacks, not only the government, but also commercial companies like my own, have enumerated a lot of their capabilities. we know quite a bit about them. they have been operating in safe harbor in russia or in adjacent areas for quite a number of years. . and lot is known about them. the thing that gets tricky is that they have been operating in an area where we have thus far not have jurisdiction or a lot of options in order to stop the activity. caroline: really great to get your expertise amid this current environment. sandra joyce, mandiant head of global intelligence, pretty busy woman, i think. coming up, youtube massively popular in russia.
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now google is facing pressure to cut back on ties to pro-russian channels. this as countries continue to sanction russia. we will discuss the knock on effect for u.s.-based businesses. this is bloomberg. ♪ . ♪
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caroline: the sanctions on russia are ramping up following its invasion of ukraine. certain companies like google's youtube are under pressure to remove or cut commercial ties with some of its most prolific pro-russian channels. for more on this story, i'm joined by mark bergen who covers google, alphabet the parent company, and done a deep dive on this. how deep do these relationships run?
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mark: that is hard to say. it is sort of a repeat of 2017. there was a lot of criticism around russia today, and russian influence after the 2016 election, that a lot of that was around the bot networks that hit facebook and twitter. on youtube, russia and today advertisers say to look at their english page, the world's most popular news channel on youtube. they are tremendously successful, they have built up with a very aggressive digital strategy. they are part of a network, there are some analysts that estimate close to 100 channels that have commercial ties to nft's that have been under lesser sanctions prior to this past week. now the eu and the u.k. and the u.s. are introducing new sanctions that impact individuals, either prominent tv journalists that have youtube channels or members of the close to the kremlin that have connections with russian media, and a lot of russian media is very popular on youtube.
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caroline: interesting. how does one go about cutting it? before we have seen labels, some of these sort of state-funded videos and channels. but do you just cut it off entirely? ? how do you control it? mark: at this point, youtube has said that they are paying a lot of attention to misinformation. that is something that we saw senator warner call out. his term was propaganda. the commercial ties with youtube 's they have a revenue split with all their youtube channels. every ad you go and see, i was just looking earlier this morning, and a lot of these -- at least in the u.s. -- they run commercials split with youtube. youtube could decide to do monetize and no longer run ads on those channels, which they have in some cases. there are some former google lawyers calling them to take more drastic measures and cut the channels off entirely. caroline: very difficult conversation have -- had at the
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executive level. is the response also, if it is not on alphabet, it is being forced elsewhere, how much are we seeing youtube being used by such news organizations or state-funded organizations, or are they going on to other parts of the internet? mark: youtube -- the interesting of that -- interesting thing about youtube is it is very popular for the pro-kremlin media. it has also been a huge asset for the opposition. navalny, a russian leader, youtube likes to point out that in a country with tight controls of state media and broadcasts, youtube does offer avenues for criticism. i think that is a fair and valid point. what is also happening is they are under incredible pressure, even prior to this past week, from the russian government around this contention of youtube channels that youtube
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blocked. then there was a court fine, now they are play -- paying a regular fine, google is. they are under pressure along with facebook and twitter to take down accounts that the russian government has told them that are extremist or using the guise of misinformation. caroline: mark bergen, it is a great story. google faces die limas. we thank you so much, breaking it down for us. we continue the conversation on social media's role in all of this. facebook, parent company meta, weighing in after russia said it was limiting access to the platform. we will be discussing the ramifications, the roles, the duties, and the difficult conversations being held at the executive level across social media in the u.s. this is next. this is bloomberg. ♪
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caroline: this is "bloomberg technology." i am caroline hyde in new york. as we headed into the end of a pretty tense week, investors are making sense of how to navigate the situation between russia and ukraine. ed ludlow is here with what has been a remarkable rally into the end of the week. ed: it is. you are trying to figure out your exposure and financial markets. you are trying to figure out which stocks will be impacted in the short and long-term. this is a discussion we have to our -- to have around social media. meta and twitter, meta saying
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russian authorities ordered them to stop fact checking and labeling posts on the facebook platform by state run media. to which facebook declined to do so. an analyst at bloomberg intelligence jumped on this quickly say, in the case of meta, you can see 1% to two percentage points hit to daily active users. which company might benefit? twitter, really interesting, we know this from the olympics and the super bowl. twitter is an event driven platform. bloomberg intelligence estimating they could get a short-term boost from what is going on on the ground in the russia-ukraine situation. no matter how tense it is. it is interesting to see where capital is flowing. the etf's, let's take a look, this is the big fund. money has been going into this fund. big gains over a two day base. 2.5% over the last 48 hours or so. if you compare that to the fan
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echo russia etf, which also saw a big rebound on friday and saw inflows, you ask about the psychology of investors here. this was a big rebound. that was a massive drop wednesday, thursday. this is the etf that tracks russian equities. now you have people coming in. are these bottom feeders? are these guys coming in trying to buy the bottom? or are they looking at shorting russian equities? what is the rationale of going into art? if you look at the performance of these etf's relative to their 52 week highs, as we bring up the next board, there is a real difference in what is going on. these are two very different etf's tracking very different baskets of stocks. on a 52-week basis or a drawdown from a 52-week high, we are pretty much in the same place. the point i'm making is investors seem to take stock on friday and say, i'm going to go back into technology stocks. i'm going to go back into this etf tracking russian equities,
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and see what my exposure is going forward. caroline: great way to wrap up an extraordinary week. we thank you so much. we want to turn our attention to the world of social media and what is occurring in ukraine. , russia no stranger to peddling disinformation, especially now as it tries to shape the narrative of the war it created. in announced it was restricting use of facebook due to the company fact checking content posted by state run media. in a statement, meta wrote, bordering -- ordinary russians are using the app to express themselves. we want them to continue to make their voices heard, share what is happening and organize. for more, i'm pleased to be joined by margarita konaev, associate director of the center for security and emerging technology, along with bret schafer, senior fellow at the alliance for securing democracy. first and foremost, what is the playbook we are currently seeing out of russia at the moment? margarita: i think it is a
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standard of combination of things we have seen before. it is a reiteration of the narrative that nato expansion has driven russia to defend itself, which is obviously a disinformation tactic, designed to justify the current attacks and a lot of atrocities that we will see. another answer is being put at dissuading ordinary russians from taking a stand against the conflict and against the war. i think we are soon going to be seeing the domestic prospect is being driven by external cia -- those points we have seen before. it is a combination of targeting domestic audiences and looking externally. tools that russia has honed in,
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and now we are seeing it repeated in a way that has been difficult to tackle for those media companies that you discussed earlier. caroline: difficult to tackle, and particularly when russia is saying it no longer wants to be using the meta platform. how do you see social media companies such as youtube, google, alphabet, meta's facebook and instagram, how do you see them being able to respond this in real time? bret: i think it is going to be a real moment of reckoning for the u.s. social media companies. for years, they have tried to be neutral platforms where they have allowed different perspectives to exist. yes, they have labeled the russian state media outlets as being russian state media outlets. but they have also labeled u.s. media outlets. they may be forced into taking sides. frankly, that choice may not be theirs. i think the russian government will continue to crackdown on
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western social media companies. we saw that today. i think it is possible, if not likely, at some point the russian government, if this conflict continues to escalate, that they will cut off access to twitter, facebook, google, for their own domestic population. caroline: to that end, rita, how effective would that be? we know a vpn when we want to use one. what outlets people are using? how much russian people have preempted the fact that it might be harder to access certain western providers? margarita: absolutely. i think in modern society, you can never -- especially a country that has been integrated into the outside world. we are not talking about korea or china. we are talking about a country that has -- ukraine has been fully integrated into europe, and even parts of russia have been european facing. even if we are seeing reduced
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access to facebook, we just talked about youtube being a meaningful platform that raise -- that regular russians follow. they also use what's app and telegram. those are apps that will continue to be a way for people to communicate, and is also a spread of disinformation. and don't think russia will be able to seal the internet as we know it. there is no argument that they will try to control the information that is reaching russian citizens more tightly. caroline: to that point, how is it a good way of layman's terms to be ensuring you are not being targeted by misinformation? we just heard of this cyberattack that could occur, they are sending text messages to people and the like. how do you feel from a social media perspective that people could try to understand what is true and what is not?
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bret: russia has significant communication capabilities. there outlets are very successful across social media platforms. those are the easy ones to deal with, because we know what they are. they can be labeled, information consumers understand where the information is coming from, and the intent behind it. what it gets trickier is russia also has a significant capabilities and the covert space. we know they run troll farms, they run pages presenting themselves as being genuine american political opinion pages, but of course have been connected back to russia. they have ways of messaging, a capability that does not make it entirely clear where the information is coming from. this is very difficult for the social media companies to fair at out. as information consumers, we have to remain vigilant and skeptical, because russia has ways of reaching us that don't necessarily come through outlets that identify themselves as
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having a connection to the russian government. caroline: very briefly, the amount that has been spent by certain companies to beef up ai, to ensure they can take down bots, to be a fact checker of choice, is that enough? have they done all they can come into a certain extent? margarita: i think there is a lot more to be done, and not just in that automatic false actor bot space. there is a lot to be done, the fact that -- like bret mentioned, there appears to be legitimate western political form -- informants who are discovered to be russian bots or russian influencers masquerading as someone else. at the same time, we are also dealing with actual real people in the west who are a political influence one way or another, whether intentionally or unintentionally, and that is
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amplifying a lot of the russian messaging. that is something that i think americans and people throughout europe should be more cognizant of. caroline: hold ourselves to account too. marguerite --margarita konaev, bret schafer, we thank you for it. have a good weekend. coming up, the fight over control for information in the conflict between russia and ukraine, we will talk with ar weave. it is designed to provide permanent data storage safe from state censorship. we will discuss. this is bloomberg. ♪
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caroline: crypto has been a focus throughout the ukraine-russian tension, because of the price moves, but also the ways in which some oligarchs could or could not be using the technology. but let's talk a little bit about how it uses the underlying technology, not ideally in blockchain per se, but this time block weeds. arweave is a berlin blake -- berlin-based startup that built an archival platform for permanent data storage as a means to counter state censorship of online information. sam williams joins us now. sonali basak as well. i want you to take it away with sam. >> i think the situation in ukraine is an interesting example of where storage centralize could be applicable. could you explain what is happening when it comes to ukraine, and the types of information you are able to store in a decentralized way? sam: yes.
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we think in order to learn from the past, we need to store the past and such a way that it will not be altered over time. we have a ledger that is decentralized in nature. storing hundreds if not thousands of places across the world. that storage with a sustainable endowment. essentially what that has done is it has created an archiving box, putting approximately a million pieces of data a day, and replicating it around the world so with it cannot be altered. sonali: 10 -- caroline: can you tell us about whether or not we are already seeing your technology being used? how are you deploying effectively an ability to ensure that what is currently being written in history remains so? sam: we use cryptography to back the system to make sure that information cannot be changed from the cyber network. then we have a system similar to proof of work that bitcoin has. we store the data set.
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matt proves the data has not checked -- that proves the data has not changed. sonali: i'm wondering how people use the data after it is stored. you have this instance where senator pat toomey had talked about the technology in order to store work when it comes to apple daily in china, and the inability for the government to erase the information that surrounded apple daily. how then does the u.s. or other people and actors and governments start to take a look at the data that is being stored? sam: i think the key thing is information is available everywhere, not just the u.s. we can collect that data from hundreds if not thousands of different places. while china may have successfully -- they really can't remove access to arweave in any serious faction --
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fashion. caroline: just remind us of protocols, the arweave token in particular. how is it incentivizing people to be using your particular provision? how many people are? sam: using it on the storing site or the hosting site? either way, it is hundreds of thousands, if not millions of people on the storing site. there are hundreds to thousands that have replicated that information around the world. sonali: speaking of funds, you are announcing a fund raise, so what will you you -- do with the funds? you have interesting large backers, blockchain capital, coinbase ventures. to what degree can you grow using the new funds? sam: we are taking investments from many people over the years,
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and most of those people are from the open market. the key thing for us is attracting new founders in the ecosystem that are using the technology we have created two new use cases. . for example, there was $18 million invested in order to create enterprise solutions on top of the solution to allow businesses to store data, which is very important for compliance reasons. caroline: we want to thank you for your time. sam williams, arweave founder. we want to thank sonali basak for helping us bring them here and some use cases being evolved as we look between the russia and ukraine invasion. coming up, what we can learn from russia's history of cyberattacks and be better prepared against future threats. that is next. this is bloomberg. ♪
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caroline: with russia's invasion of ukraine, it has been accompanied by cyberattacks, preempting it to a certain extent. now the question arises, how do you prepare for cyber conflict? our next guest has some insights into just that. chet wisniewski is a threat hunter, of sorts, as security software sophos. it was great to have some time with you. talk to us about what we have learned in previous years? we have learned perhaps what sanctions do to russia and their response. what has their response been in terms of cyber? chet: it has been quite a history. atnstates have not been caught doing too much. with russia there was a lot of information to mine.
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they started doing cyberattacks against estonia back in 2007, and followed that with attacks against georgia after that. of course, there were attacks during the crimean invasion in 2014. we have even seen them mess with kirk and stan -- occurs extent and others. we were able to put together a map of things, as you see on the screen. depending on the types of attacks, there's always a pattern to it, which is what we call denial of service. it is taking down news and government websites to create confusion, followed by a lot of other types of attacks. caroline: talk to us about the other types. we have seen the attacks so far, in particular affecting ukraine. what next? chet: we saw a little bit of activity this week before the invasion, which is something we have seen before in russian operations, which is not attributed to russia yet by any government agency, but it is
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suspected these so-called wiper attacks which in essence is a computer virus that gets on your computer and instead of stealing information -- it disrupts things. we did see that on wednesday before the invasion. caroline: we were just talking to sam williams of arweave about how to protect your data and ensuring it can be stored for longer periods of time. what about people in terms of how stress to systems already are, the fact that many people are working from home, have we got the level of cybersecurity that we should have? have we learned the lessons of the past? chet: unfortunately, our cybersecurity is not in good shape globally. and particularly in ukraine where resources were more limited than perhaps we have in the west financially. pandemic has not helped us either. we have all been more remote to provide access to our networks and information than we normally would have publicly facing. as a result, that many more opportunities for criminals or
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nationstates to exploit that openness. caroline: in past, we have talked about the vulnerability of infrastructure, in particular the power infrastructure. is that what we should expect this time? what does history tell us about looking for vulnerabilities? chet: it is hard to say. i'm not a political scientist so i don't want to comment too much on the politics of it, but it would certainly seem we have moved into a phase where nonstate actors are taking over as patriotic hackers, if you will. the ukrainian president called on ukrainian patriots to try to hack back after russia. we have already -- from the date, it has been evolving. we have seen criminal groups believed to be based in russia make public proclamations that they will come after western assets in retribution for the sanctions or whatever other penalties we are imposing on russia. caroline: that is ransomware they will be coming after, you think? chet: certainly ransomware
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groups, that's for sure. they are not limited to ransomware necessarily. the one particular ransomware group has, in our experience, performed some of these wiping attacks when they were not paid the ransom in a previous ransom attempt. they could certain -- could certainly get nastier than taking our data, they may have footholds inside of western assets and just delete things to be disruptive. caroline: how many calls are you getting at the moment? what are you doing to help your clients? chet: it is a busy time. the challenge for each individual organization is identifying what their weaknesses are, and on short notice, what they may be able to do to try to mitigate the risk of being victimized. there has been a lot of conversations with the larger clients, just having conversations about what can you do right now to make the best of the situation? and what do you watch for to know that something may be
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underway where you want to back and down the hatches? caroline: one thing we should look for? chet: certainly we have seen a lot of abuse on unpatched networking equipment. back to the pandemic question, all of the working from home with vpns and things, the russians have consistently abused those flaws when they are not fixed. making sure those fixes are applied, in monitoring the network carefully for unusual activity. especially things that may involve large quantities of data being transported at off hours are often signs of an extortion or ransomware attack. caroline: really good to speak with you. thank you so much. chet wisniewski, research scientist at soho's. that does it for this edition of "bloomberg technology." you want to stick around. wall street week is up next. my colleague david westin leading that as always. larry summons is there to discuss. a real deep dive into an extraordinary week, and where we saw u.s. benchmarks close. he will be joined by president
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of the wilson center, alongside the ceo of blackrock allocation team and former treasury secretary, larry summers. stay with him, from a clearer you new york, wishing you a well weekend. this is bloomberg. ♪
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david: suspended animation. the world puts aside issues of inflation and earnings and fed policy and even covid for a week consumed with war in ukraine. this is "bloomberg wall street week." i'm david westin. the suite, larry summers of harvard on the effects of the war in ukraine and economics worldwide. larry: we are in a very different world than many of us had thought we were headed into. david: and not letting ukraine distract us from the second largest economy in the world, china.
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