A quarter mile from the airport. Global news 24 hours a day powered by journalists and analysts in more than 120 countries. And this is bloomberg. Emily this is bloomberg technology. The cyber strike felt around the world. We are live in london where one place ransomware struck. D an alliance with a big competitor. And as retailers struggle to stay above water, one industry struggles to stay afloat. And we will talk to katrina lake. Over the weekend a global cyberattack snowballed to infect 200,000 computers in 150 countries from the u. K. S National Health Service to russias ministry of interior. While government and Companies Work to contain the attack, Homeland Security adviser denied the u. S. Is responsible. This was a vullnerkt of a much ladger tool that was put together by the culpable parties and not the u. S. Government. This was not a tool developed by the n. S. A. But a tool developed by culpable parties developed by foreign nation states that are put together to develop it in emails and embedded documents nd causing encryption. Emily we are joined by Caroline Hyde and patrick morley. The origin of this attack is complicated as you heard the white house speaking there. Talk to us about how this started. Caroline the mud shrinking was being directed at the National Security agency saying you remember the attack earlier this year that some of its tools were dumped on the public internet by hackers. The blame is being aimed at eternal blue. This is meant to penetrate a vulnerability within microsofts operating system. So it was able to spread. T was phishing emails and they say it is in the blame of shelfing of documents. Remember, when this was dumped by the shadow brokers who were the hackers who got to the n. S. A. , microsoft sent a patch back in march saying update your systems. But many that have been hit have een perhaps not tech savy. Health systems here in the u. K. Havent been updating and havent got it in their grip. And this has been able to spread and microsoft at the top blaming perhaps the united states. We heard from the president and chief legal officer, brad smith saying look, the u. S. Military have the equivalent of their home toma hawk missile. He is trying to hint that maybe the n. S. A. Is to blame and Homeland Security is backing away. Emily brad smith is saying this should be a wakeup call. And talk about the reach of this. Fed ex in the united states, Major Telecom giants in spain, hospitals in japan and indonesia, what does that tell you about the actual target and intention behind this attack . Patrick cybersecurity is a very important issue and reinforces that its a weapon that can be used in the wrong hands in a way thats very bad for the global economy. And the this was nothing novel and put together leveraging a set of things that have been known for quite some time but done in a broadway that again it brings home how vulnerable the economy is on a global basis. Emily what is quite interesting, perhaps asia didnt kick it off. Everyone was bracing and china had 40,000 of their computers, but many more thought it would be much bigger across asia. Hy hasnt it been . Patrick. Looks like patrick is having trouble. Emily i would like to ask you about the continued fallout from this attack. Caroline mentioned in asia, it took a little bit of a longer time to pick up. Are you expecting more fallout from this attack and where . Patrick we will continue to see Additional Companies that are hit by the attack. If you look at the way what the attack is relying on, its relying on two things, user behavior, people are getting phished and you have vulnerable systems. That is the primary combination that the adversary is hoping for to gain money. We will continue to see a long tail on this with additional organizations getting hit. The Media Coverage actually has been a real benefit because it has woken you up a lot of individuals that they should be smart before they open emails. Ily talk about the ransom aspects, it locks the user out and in order to get back in, they have to pay the perpetrator 300 in bit coin. What do you make of this tactic . Bit coin is something that is more difficult to track, but even so, couldnt that lead directly to the people who are behind this . Patrick well, this is there is a large underground that has been built from an organized Crime Syndicate around this on a worldwide basis and they have built mechanisms very effectively to make it challenging to find them. And the simple way to think about it because they hacked other machines around the world, they can object fuss indicate information. They are harder to find. Two years ago, f. B. I. Said ransomware was a 24 million problem. This year, it will be over a bill done billion dollars. And this is causing challenges. We have not seen the biggest, baddest yet. Emily what are businesses supposed to do, do they pay or wait it . We would tell businesses not to pay and when we talk to our prospects that have been hit in the past, we see more organizations not paying and using this as a having a way to have a conversation about how to implement Smart Security in todays world that is a hyperconnected world. And much of what we see in this basics. Omes down to backup your computers and as the e. O. Of carbon black and use Nextgen Security products. Emily caroline you have been looking into how far this has reached and talk to us about the extent of where these Computer Systems have been hit around the world. Caroline 200,000 computers and 150 countries. Here, it has been the very infrastructure of the united kingdom, the National Health system. In spain, we have the telecom giant, of all companies to be t and germany and German Railroad and from u. S. To russia, the money being ex torlted is not much, 300. 60,000 has been paid so far. At least 200 people have paid up so far. Emily it is quite a perplexing attack and will continue to follow this as a fallout continues. Caroline hyde in london and Patrick Morely from carbon black. Snaps continues to recover from losses after last weeks 21 plunge after the institutional owners purporting stakes in the apps. Fidelity with 33. 2 million stake george sorrows owns a new stake in snap. Adding gains to friday that traced 2 3 of thursdays related earnings correction. Coming up another blow to uber as they partner up with livet. This is bloomberg. A many more credible threat to uber thrfment is so much we dont know about the autonomous landscape and how the companies will compete. But it is a strong partnership. Emily a judge is weighinging to eeze ubers selfdriving efforts. Eric we got the latest. And the was the most imminent benefit. The judge said the head of the program or the former head cant be involved in these lasers that the car used to see things around. Uber did that. So the supreme injunction isnt stopping uber. Uber can keep Going Forward. The threat is the judge seemed to say things that were bad for uber. Emily some industry observers said that uber doesnt need the technology that was supposedly stolen in order to sell their selfdriving cars. They have been using to see what is going on and researching their own method. They dont have enough line for uber. Its expensive. At the end of the day if it is to be cheaper than human drivers, the company wanted to develop the technology to make it less expensive. Emily are uber selfdriving efforts in peril . Eric it still hangs on this case but the time line is much farther off. This preliminary injunction and gone past this and this court battle will take a lot of time and turns out what the ultimate consequences but allowed to go forward and thats good for uber. Emily thanks for that update. Another ongoing battle for the company. Regulatory hurdles in the e. U. , bendedtta arese lucini. I have to ask you, what is your task on this new partnership . Do you think it is a threat to ubers business . Bendedtta any partnership that can help Autonomous Cars get on the road is a great one. There is space for a lot of players in the market and the idea behind uber was to take more cars off the road and create more safety for transport. So it can be competitive, but i it can always be a good incentive for uber to do more. Emily im curious about your own experience at uber. Uber has had its fair share of p. R. Issues over the last few months. Do you think travis is the person who should be leading this company . Bendedtta i chose uber because of interviewing with travis. I think he is a great leader. A lot of what he comes, comes outside the company is very different of how it is internally. I think he has always cared about the way and direction of the company and said many times that he was going to change. So obviously with a company that is going so fast, when i joined uber, we were little over 100 people and now over 6,000 and hard to control the h. R. And planning of the team of such a High Growth Company but he is in the best interest of uber to keep a devoted leader on board. Emily ubers class for World Domination has hit resistance, especially in italy. There is an appeals process going on. How do you think that issue will be resolved in italy in particular . Bendedtta ubers problems have been seen across the world. Users are really behind the app and want to use it and we have seen this in italy and users are being loud defending the battle that uber is trying to bring on in europe, which is to liberalize markets that are way more close than you can see in the u. S. With very few licenses for taxi drivers and its very hard for them to stand behind new innovation and competition. But what we have seen is that users have really stood up for the app and new types of services. And if you come to a european city where uber like london, everyone is loving it and can be done. There has to be new regulation put in place, but this new regulation has to foster innovation and leaders in europe are much more conscious about innovation in europe and im hoping for transfer to really manage to penetrate the european market. Emily i wonder about that, just last week a Senior Adviser to europe recommended that uber has to follow tough transportation rules. How is uber going to overcome this resistance . Will . Y sheer force of bendedtta the regulatory law does not focus on the local level. And this has created problems which Technology Companies have been able to facilitated by regulation that is europeanwide. The point that is very important to notice and to underline is the fact that at a year level, very little could be done at local transportation rules. This is a struggle for uber, but not just uber, but other companies, a car pooling company and french company, but they have seen a lot of struggles also because regulation around car pooling is not very clear. Emily i want to talk about your personal savings app and powered by collective intelligence and marrying the wisdom of the cloud and machine learning. How is this different from other savings app on the market . They are very passive. They allow you to do savings or savings through and we are trying to find a way and we have seen it through behavioral economists and we allowed users to linching savings to their behaviors like running, and you can save every time you run or link it up to your social media. So this allows a creation of like a little bit more of a solution and making saving a little bit more of a multi player and challenging kind of experience that can help you really get traction. And first results have been very positive because we see people increase the amount of saving every week over time. Emily interesting stuff. Well keep our eye on it. Former head of uber italy. Thanks for joining us. A. M. A zon made its debut as a public company. Can you believe it and how much money you could have made, next. Take a look at the u. S. Majors, p 500 and nasdaq closing at alltime highs. Amazon has pumped cash in prime and newest services and echo ai platform. And while it has worried many investors, amazon has turned profits for eight straight quarters. And amazons market cap now 230 walmart where billion. Now amazon is stepping further on walmarts turf. Surely a battle royal e to watch. Emily another story we are watching, government officials from the European Union and u. S. Will meet in brussels on wednesday to discuss plans to broaden an inflight ban on mights and they said they expand the ban currently imposed on u. S. Bound flights. It could mean longer security lines and heightened delays. Coming up as governments and corporations trying to contain the mall ware attack. Cybersecurity firms, we will discuss next. You can listen on the bloomberg roo app. This is bloomberg. Mack cron met with angela merkel. Mack crons berlin trip continued a tradition of french president s making their trips to germany. Mack cron has named felipe as french Prime Minister to widen his appeal before next months parliamentary elections. The Trump Administration accuses the Syrian Government of mass killings of thousands of prisoners and burning the bodies in a large korea ma torium. The state department believes about 50 syrian detainees are dead being hanged at a prison. In iran, a conservative candidate dropped out of the president ial race there to throw support, the hard liner. He is believed to be the favorite of the supreme leader. Iran votes friday on the Nuclear Agreement with world powers. In venezuela, protestors mobilized on main roads in the capital city for a national sitin. That is the latest of demonstrations against the president. Opposition leaders are demanding immediate pptal elections. Just after 5 30 here in washington, 7 30 in sydney. Paul has a look at the markets. Paul paul we are already seeing futures pointing up about a third of 1 after a rally in the oil price and also more record highs on the snap and nasdaq. Locally, we are waiting on the reserve back on the may meeting. And the bank does president seem in too much hurry to move in either direction, so we will be watching for commentary and weak wages growth. Futures, an, nikkei and huge net loss with Western Digital and will take them to stop them. And earnings out from the big three japanese banks. Im paul palen in sydney. More from bloomberg technology, next. Emily bloomberg technology, more than 200,000 computers . At least 150 countries have been infacted by mall ware. Users are locked out until they pay 300 of bitcoin and it gained momentum over the weekend and businesses and users are bracing for more. You think digging into the impacts of this on Small Businesses, what are you finding . Cory Small Businesses are the perfect target for ransomware. They are businesses that rely on their Computer Systems and Payment Systems and rely on the data that they gather and use in their daytoday lies but they dont have a massive i. T. Budgets that will keep them updated in security updates and the i. T. Staff to track down these problems. They are the most likely to pay. Ibm did an interesting study that was released earlier this year and 70 of the Business Executives who have been targeted by ransomware were willing to pay and with 50 of them paying over 40 grand on each occasion. Toes kinds of numbers, over 10 grand and some paying over 40 grarned. So many of these victims are willing to pay up shows you why they are the perfect target. D do the math and if 70 pay , that is 42 million payout for the criminals. That is what they are used to inflicting. Emily in addition to you, the perpetrators, some companies are benefiting from that, who are they . Cory certainly in terms of stock market moves, they buy up any cybersecurity stock and forgets about it a couple of days later. Some of the Smaller Companies that are focused on that have seen a great benefit. Prove point and others. One of the companies that we pay carbonite and made it a focus saying protect yourself from ransomware and their messaging over the last year and their solution and you have seen their shares of 121 . And gains in terms of sales for this company have been spectacular over the last year. I think sales are nearly up 50 , 53 indeed. Not just a beneficiary in the their uple of days business is growing on the heels of this rampant cybersecurity attacks. Emily cory johnson, we will continue to watch this Ransomware Attack and bring you any updates. Digital assistance are the popular kids on the block from amazon to google home. Another startup wants to be part of the incrowd. There is an interactive assistant that leverages deep learning to keep residents connected to their homes while away. They have support from teck ywargetse from teck ech heavywaringts. Describe how the technology works. It is amazons aelectiona technology. Your Company Keeps you connected to your home while in the outside world. Its the combination of deep sensing and learning and makes it possible to understand what is what in the environment, thats a child, a dog, a person, a mother. Lets us behave intelligently. You can literally say, hey, lighthouse, let me know when you see someone at the front door with a dog. Emily even though the connected home sounds great, it sounds like very few people have connected to their home because it is very difficult. What point does it become mainstream behavior . There are millions of home cameras out there and they provide a Great Service in terms of recording data and access to that data. Making that data useful and giving you actionable information. And thats what people care about. We call this interactive assistant. You tell it what you care about and tells you when those things happen. Emily biggest tech giants trying to stake out their territory. Who is it faster . Amazon is the most interesting one. Devices buying echo which looked ridiculous saying who wants this thing. And they are taking off. The products they have announce involved video and calling on top of that as amazon just did, maybe you think this is the next smartphone and maybe they own the smart system of the home. And other players are making plays. So there is a lot of interesting activity but i dont think its clear how it shakes it at all. Emily what do you think . We see the different offerings as being kind of complementary and aelectiona is a very great way and lighthouse. Emily how many devices am i go go to need . It depends what you are looking for. If what you are most excited about is what is happening at home, then lighthouse is a fantastic choice. Emily are privacy and Security Issues of concern here and it sounds a little like big brother. Security and privacy are and trust is the utmost importance. We built in bank level security measures across the products. Emily what is your take on that . What are you hearing from potential customers . I think people are getting comfortable with the privacy issues. I have a camera in my kids room and it is owned by google and makes money selling data. And im using it and not thinking too much about it. We have given up more to these companies in terms of privacy than anything they can in terms of looking at our homes. People are comfortable with it. And we are seeing some of these a. I. Things that people have been talking about for a long time. Machine learning and sensors what people have been talking about with selfdriving cars and the technology are being sold to consumers in devices like this. A. I. Is becoming mainstream. Emily a. I. Is going to be a big topic this week starting wednesday. We will keep our eye on you guys. Thanks for stopping by. Hile traditional retailers and etailers. A c. E. O. Will let us in on their shopping secrets. This is bloomberg. While many retailers and etailers have been trying to stay afloat, one company is staying above the doom and gloom. It hit sales of 370 million and has been profitable. It relies on data and network of stylists to send clothes to customers on demand. We are joined by katrina lake. There are a lot of clouds over the retail landscape but you have been defying the odds. Catherine it is customer centrist katrina what is fend mentally matters to her and be able to create a Business Model was at the core of what we do. Our clients let us know their preferences and their body and what they are looking for and we are able to cater to what shes looking tore and not have to weed through all the listings and filters through all the results and all of the kind of difficulties that people see in ecommerce. Emily how do you weather the challenges in such rapid growth . Katrina we have scaled. Five Distribution Centers and over 6,000 employees and built an amazing base from which we can continue to grow and also to launch new businesses and we Just Launched mens about eight months ago and plussize and in the mens business, we built the business in six months to be as big for the womens business with three years in. We created this platform that has this sectors for growth and we can really focus on that. Emily how much of these businesses contributing to the bottom line . Women still your bread and butter, is it men, maturnt . Katrina we have been seeing plussize and surpassed our expectations and how fast it has gone and that is an underserved market and one we are well suited to serve exceptionally well. Emily you havent raised any additional funding. Ou raised 42 million from and de inversus and uber they are not profitable. Is there irresponsibility . Katrina in our company, i folked on economics and making sure we were going to be in control of our own destiny and serve the customer we want to serve our customer was right for our financial situation. I think has served us well. There are a lot of investments, mens and plus sizees. Emily what are your capital plans Going Forward . Do you think you will raise the money . I cant comment on any raises that we might do. We are just focused on building our business and serving our client well. Emily one of the questions is how many clothes do people need, will customers keep coming back over months and years rather than just a one or two off . Do you think this is sustainable . Katrina one of the amazing parts of our business is we have this partnership with our clients. Our client is sharing with us, what she is feeling, what she is looking for and where she is in her life. And she saced i have a lot of clothes or i just came back from maternity or starting a new job. It enables to be good at retention and understand where he is in her life cycle. Emily amazon is experiencing with brick and mortar, is that something you would do . Katrina no. Emily can clothing be rented out like net flick and rent heir wardrobe in the future . Katrina we havent experimented much with rental. It has been exciting and really huge base and a lot of different ways that Customer Behavior has changed. But you know, we are excited to see how excited the customer is o try apparel and buy apparel. Emily what about the threat from amazon. Amazon is getting into brick and mortar and fashion as well. Katrina amama zon is an amazing company. We are on a different value proposition. For us, there are a lot of product categories and decisions. Trying to find jeans that are just the cheapest jeans that are going to ship to you the fastest. They are going to look for jeans that fit their body and makes them feel great and that is hard to do in filter and search. We dont underestimate them but we are focused on a different value proposition. Emily thank you katrina lake. Coming up, we dive into the Health Care Space with one company betting that a. I. Will one day take over the industry. That is next. Pan dora is thinking toll sell. The company is looking for a buyer for the entire company and selling the ticketting business could be an option. It paid 450 million back in 2015. Health care has been on the minds of many as the white house and Congress Push to overhaul what is known as obamacare. It will have a major impact but some are betting that it will pale in comparison. Thats the rise of Artificial Intelligence. We sat down with alex cofounder of roman litics and asked about the rise. The way the Health Care System works is a system of inputs and pay for Services Without understanding what it does for the patient and massive transformation is to pay for value, pay for things that happen to patients so when a procedure works, we pay for what it does for a patient. You have to understand when a patient walks through the door, everything you know about the provider and the doctor, what is the way to treat that person to get them to the best possible outcome. The moment we do that, three things happen. The trillion dollars that are wasted, giving things to people that they dont need. Number two, you start creating very different incentives for doctors and how do we optimize what happens to this patient and most importantly, having much Better Outcomes for patients. And the only way to do all that is to have Artificial Intelligence bring the data together. It hardware is great but based on the interaction between a patient and a doctor. How do you change that . If you look at the Health Care System today, for the most part for any disease that is remotely complicated, you have set protocols. You may have an individual interaction with your doctor. Each hospital, each medical group will have things they think need to be done and the Insurance Companies are aligned of what they are going to pay for. We arent telling them you arent doing a good job. If they have melanoma, here is the path to treat them and do it within the framework of something that is defined by what works best for patients. How hard is this to do . Medical care and computers have not been easy to marry in the past. Health care has been around for centuries. There is a massive misunderstanding. In truth, there is an overwhelming amount of data in health care, data in Health Records and data. And data never talks to each other and a huge chunk is text data, unstructured data. And so what we have tried to do is build a platform that makes that platform easy and extract data from text. If you look at a Health Record and doctor prescribes you medication, understanding the context for why that was prescribed means you have to understand the texan the notes. That is the technology we are building which is possible because of the clouds and how much data is available and some of the things that my cofounders have built at this very university in terms of the technological platform. One of the things is that health data is very, very personal and doesnt seem that anybody can protect anybodys data these days. That isnt true. There is hipa protection. But the reality is we are not trying, the question is not can we at the level of alex tell you what to do. N a way, patience who look likeal ex should be getting hese type of erm treatments. Ovenly in rare diseases, it could be challenging and really important that the government has a framework that evolves. But the challenge here isnt privacy but completely different mentality of how you pay for care. Litics at was roman c. E. O. That does it. On tuesdays show, we will be going to an exclusive interview. This is bloomberg. From our studios in new york city, this is charlie rose. Charlie we begin with the fallout surrounding president trumps firing of james comey earlier this week. Trump began the week warning comey of leaking anything negative about him and president search s broadend his for f. B. I. Director and considering an interim director. Jonathan karl is here and he had rollins and