Woodruff those are some of the stories were covering on tonights pbs newshour. Major funding for the pbs newshour has been provided by moving our economy for 160 years. Bnsf, the engine that connects us. Supported by the john d. And catherine t. Macarthur foundation. Committed to building a more just, verdant and peaceful world. More information at macfound. Org and with the ongoing support of these institutions and. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Woodruff wall street battled bad news all day and ended with sizeable losses. A computer glitch that stopped trading for hours. The Dow Jones Industrial average lost more than 260 points to close back near 17,500. The nasdaq fell nearly 90 points and the s p 500 fell 35. Ifill microsoft announced today its cutting another 7,800 jobs, or about 6 of its global work force. The cuts affect the companys struggling phone business. Microsoft already cut 18,000 jobs in that sector as part of a major restructuring. Woodruff greece made a new financial bailout proposal today, in the face of a new deadline and a possible grexit a greek exit from the euro zone, the european monetary union. It came as greeces Prime Minister addressed the European Parliament in strasbourg, france. Jonathan rugman of independent television news, reports. Reporter he arrived to mix of cheers and scattered boos. His country in crisis, but Alexis Tsipras seemingly not so. Greece, he said, had been turned into an austerity lab, but the experiment had failed, though he promised to provide detailed reform proposals in next few days. translated we are asking for productive and fair compromise. I believe together we can rise to this historical challenge. Reporter his fellow greeks with their no signs loved it. But their leaders defiance was a little muted because today greece formally requested another three year aid package in exchange for promises, which europes stonyfaced leaders are no longer inclined to believe. You are talking about reforms but we never see concrete proposals of reforms. Im angry because we are in fact sleep walking towards a grexit. Reporter Alexis TsiprasStill Believes that he can strike a deal to keep greece inside the eurozone. But his European Partners are far from sure. And this remains a battle of wills and a war of nerves, in brussels last night greece was given what sounded like an ultimatum. Europe will keep greek banks afloat till sunday, but only beyond that if serious talks have begun. At a Midnight Press Conference a weary german chancellor appeared to rule out any more debt cancellation. Extending debt repayments perhaps germanys only acceptable definition of compromise. Woodruff greek Business Leaders warn that if theres no deal, the country will see an explosion of unemployment and virtual economic collapse. Ifill the exiled government of yemen announced today it will accept a truce with shiite houthi rebels, who control much of the country. As part of the deal, president Abdrabbu Mansour hadi called for a rebel pullout from southern and eastern provinces. The houthis had no immediate response. Woodruff and in iraq, a Baghdad Court sentenced 24 Islamic State militants to death for the massacre of 1,700 iraqi soldiers. The troops were killed last year near tikrit when isis overran the city. Government troops have since retaken tikrit. Another 600 militants accused in the massacre are still at large. Ifill back in this country, the mayor of baltimore fired the Police Commissioner today after a recent spike in homicides. Arrests have plunged and killings surged since april. We cannot continue to have the level of violence that weve seen particularly over the last few weeks in our city. And i remain committed to work every single day to make baltimore a safer city. We have made progress and i dont want to lose any of that progress. Ifill just yesterday, the Police Department announced an outside review of its response to aprils unrest. Woodruff new york city will stop demanding cash bail for suspects in lowlevel or non violent crimes. Todays reform addresses complaints that too many poor people wind up in the troubled Rikers Island complex because they cant afford bail. Under the new policy, judges have the authority to order supervision options including daily checkins. Ifill and, a federal judge today ordered that the Washington Redskins trademark registration be canceled. He upheld an appeal boards finding that the teams name is offensive to native americans. The ruling allows the team to keep its name, but makes it harder to sue for trademark infringement. Team officials said theyll appeal. Woodruff still to come on the newshour disruptions in the air and on wall street roil passengers and investors debating privacy rights, terror threats and government access to encrypted communications, aging pipelines in the straits of mackinac prompt safety concerns, in china, investor panic creates a crisis of confidence in the chinese economy, how the shutdown of Exportimport Bank may affect American Business and why television remains the dominant medium in the digital age. Ifill worries over the vulnerability of our technology and Computer Networks landed front and center. Hacking, intelligence and National Security were already the focus of a capitol hearing as the day started. Then a series of Computer System failures quickly cascaded. Woodruff the nations biggest airline, biggest Stock Exchange, and most prominent business newspaper suffered long service interruptions. First, an internet router issue at United Airlines suspended all its flights for nearly two hours. The problem lead to 800 flight delays and 60 cancellations. Then, shortly before noon, a technical problem halted trading at the New York Stock Exchange. It lasted four hours the longest suspension of trading on that exchange in several years. Finally, the website of the wall street journal suffered technical difficulties that sent readers to a temporary site. We explore disruptions and vulnerabilities with Michael Regan of Bloomberg News and kevin mandia is the president of fireeye, a company that specializes in dealing with cybersecurity and network protection. And we welcome you both to the program. Michael regan, to you first, lets start with the New York Stock Exchange closed down for over three hours. How big a disruption was this and whats known about what caused it . Well, the problems at the New York Stock Exchange actually started even before the market opened, when traders send premarket orders to the exchange, and it was clear that the communication between brokerages and the exchange was not working properly, a lot of customers were not getting the confirmations that their orders had been received. That could cause problems trairsd to have to resend orders and have duplicate orders in the system. At first it looked like a routine glitch. By 11 30, the exchange made the decision to shut down trading on that exchange. There are eleven official Stock Exchanges in the u. S. Right now and in the neighborhood of 50 alternative venues where trades can be matched, so the market was able to function pretty much as norm. They routed orders away from the New York Stock Exchange to the other exchanges out there. That said it certainly is the type of thing that can affect investor confidence, especially after a long series of glitches on electronic exchanges weve seen in the last few years. Woodruff what about the other two institutions . United airlines where delights were delayed or canceled and the wall street journal. United had an issue with the computer router that connects various networks and caused them not to be able to issue tickets to passengers and not be able to dispatch staff properly so it shut down flights for about two hours. At the same time about 20 minutes or so after the New York Stock Exchange went down the wall street journal home page a as you said started having issues and was unavailable. So there was a lot of sort of speculation flowing through the markets that all three instances were related and that there was some sort of targeted attack on the u. S. Those concerns were dismissed pretty quickly. You know the officials from the Companies Said that they were not related. Homeland security said it did not appear cyberattacks were the issue. So at the moment, looks like it was just three separate computer issues at three separate companies. It is possible the wall street journal got a lot of heavy traffic after the New York Stock Exchange shut down when people went to look up news about what was going on. Although they havent said it, it sounds like a plausible explanation. Woodruff kevin mandia, what would you add to that in terms of what was the cause and whether there was a possibility of some cyberattack . Well, anytime your network goes dark, you have a Software Problem or a security problem, its one of the three or a combination but right now im hearing its a Software Glitch or hardware problem and no ones talking about a security issue here. What we can take from this though, is when there are attacks or Security Issues its good to have a second way of doing business the Old Fashioned way to of doing things, whether hardware, software or security issue. Woodruff kevin mandia what does this tell us if anything, about the vulnerability of these big systems and i realize theyre all very different operations because we know the technology is getting bigger and more complex, what does it say about their ability to handle that . Well, we rely on these things, but i think were doing pretty good. Its hard to be in the airlines and go dark or a news company like the wall street journal or the Stock Exchange and go dark and have nobody to notice. Theres nowhere to hide when you have an issue like this but they dont come up rev day and i suspect well go multiple years before Something Like this happens again. Woodruff Michael Regan, as somebody who covers the exchanges and wall street, how vulnerable do these institutions think they are for this sort of thing . Do they feel they are prepared for what may . The u. S. Stock market has become a massive Computer System spread out over so many different exchanges. These glitches happen from time to time, but this one made headlines because its the New York Stock Exchange,ist,ist an icon. It shows its good the system is spread out over these many exchanges. When one goes down, the others take up the slack and take over the business for them temporarily, and, you know, in that respect, it was a success today that the system operated that way. That said, dollar lot of people there are a lot of people, a lot of critics of the industry that believe it has gotten way too complex, that we dont need 11 Stock Exchanges and the other venues, that maybe four or five would be enough, and this is certainly going to reignite the debate about whether the market has become too complex. Woodruff well pick that up, kevin mandia whether its the Stock Exchange or the airlines or another big institution, how prepared are they for the kind of incredibly more complicated technological world we know were heading into . Well, everybody is trying to get more prepared. Thats what were all doing. If you look over the last 15 years in cybersecurity, there have been more and more attacks, the watermark of security is going up in our nation because everybody is more aware with all the headlines on almost a daily basis of another attack and another threat. We dont have good rules in cyberspace now. We have countries hacking other countries, we have criminals trying to hack on a daily basis so everyone is getting more prepared for that. When youre hacked either by a 15yearold kid or military garnering intelligence from your organization, the liabilities are the same to everybody is raising awareness. Woodruff kevin mandia, Michael Regan, thank you both. Thank you. Ifill earlier in the day, the Obama Administration went to capitol hill to make its case over accessing encrypted information. Essentially the government wants to be able to read certain data that intelligence agencies cannot do now because its been protected with special codes. Thats at the heart of an ongoing battle with Tech Companies. Encryption is a great thing. It keeps us all safe. It protects innovation. Ifill but f. B. I. Director james comey warned at Senate Hearings today its also a doubleedged sword. Thats because the technologies that seal off smartphones from surveillance, also impede efforts to track criminals and terrorists. We are moving inexorably to a place where all of our lives all of our papers and effects, all of our communications will be covered by universal strong encryption. And that is a world that in some ways is wonderful, and in some ways has serious Public Safety ramifications. Ifill google, apple and other tech firms have ramped up data encryption, in the wake of Edward Snowdens revelations of sweeping government surveillance. Theyre also responding to steppedup hacking coming from russia and china. But at the same time, Islamic State followers and other militants are now using encrypted communications to recruit, at a rapid pace. Deputy attorney general sally yates underscored that point today. Isil currently communicates on twitter, sending communications to thousands of wouldbe followers right here in our country. When someone responds and the conversations begin, they are then directed to encrypted platforms for further communication. And even with a court order, we cant see those communications. This is a serious threat. And our inability to access these communications with valid court orders is a real National Security problem. Ifill and, the f. B. I. s comey suggested its just a matter of time before that leads to a terror attack. We are stopping these things so far through tremendous hard work, the use of sources, the use of online undercovers, but it is incredibly difficult. I cannot see me stopping these indefinitely. Ifill in a new report, 14 of the worlds top cryptographers and computer scientists argue that giving the government access, will compromise commercial and consumer secrets. Others focused today on privacy concerns. Peter swire, with the Georgia Institute of technology, said the government already has plenty of ways to track people. For the first time in human history, most of us carry tracking devices called cell phones. And when you add in Video Surveillance and the upcoming internet of things, evidence about a suspects whereabouts at a time and date is far, far more often available then ever before. Ifill ultimately, federal officials said, they hope to work with tech firms to strike a balance between privacy interests and Public Safety. But where is that proper balance . For that we get two views. Stewart baker was assistant secretary of Homeland Security during the george w. Bush administration and General Council at the National Security agency during 1990s and susan landau is one of the authors of the paper objecting to more government access. Shes a professor of cybersecurity policy at the worcester polytechnic institute. Stewart baker, weve heard james say many things, among them he wrote theres no doubt bad people can communicate and that he essentially cant stop them with impunity. Tell me how that works. So it is possible now to write codes that no one can break and to use those codes to communicate to store everything on your phone in an encrypted fashion or to communicate with coconspirators in a fashion, really for the First Time Since weve had modern communications that no government can get into. So government intel loses, slowly, the ability to understand what people are saying to each other on modern communications. Hasnt happened yet, but it clearly is getting ready to happen as encryption becomes ubiquitous. Ifill susan landau, whats the danger in the government having another tool in which they can use to protect us . So its not a question of having another tool. The real issue is whether or not we should have what they call exceptional access access to encrypted communications and exceptional access described in the abstract sounds good, but you have to actually think about it in particulars. For, example one technology thats with