Tag Archives: New York Times

Silicon Valley Nerds Seek Revenge on NSA Spies With Coding

According to Bloomberg,

Silicon Valley Nerds Seek Revenge on NSA Spies With Super Coding (Bloomberg)

Silicon Valley Nerds Seek Revenge on NSA Spies With Super Coding (Bloomberg)

Google Inc., Facebook Inc. and Yahoo! Inc. are fighting back against the National Security Agency by using harder-to-crack code to shield their networks and online customer data from unauthorized U.S. spying.

The companies, burned by disclosures they’ve cooperated with U.S. surveillance programs, are protecting user e-mail and social-media posts with strengthened encryption that the U.S. government says won’t be easily broken until 2030.

While the NSA may find ways around the barriers, the companies say they have to assure users their online connections are secure and data can’t be grabbed when transmitted over fiber-optic networks or digitally stored.

Microsoft Corp. is convinced it must “invest in protecting customers’ information from a wide range of threats, which if the allegations are true, include governments,” Matt Thomlinson, general manager of trustworthy computing, said in an e-mail. He didn’t provide details.

Internet companies including Google, Yahoo, Facebook, Microsoft and Apple Inc. are trying to distance themselves from news reports that they gave the agency data on electronic communications of Americans and foreigners or have lax security.

While the companies are trying to prevent the NSA from gaining unauthorized access to their data, they say they comply with legal court orders compelling them to provide the government information.

The NSA has tapped fiber-optic cables abroad in order to siphon off data from Google and Yahoo, circumvented or cracked encryption, and covertly introduced weaknesses and back doors into coding, according to reports in the Washington Post, the New York Times and the U.K.’s Guardian newspaper based on documents leaked by former NSA contractor Edward Snowden.

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Earnings growth to drive equity markets: Goldman Sachs


Earnings growth to drive equity markets: Goldman Sachs

Earnings growth will be the main driver for global equity markets over the next year as the world economy picks up, the chief global equity strategist at Goldman Sachs told CNBC.

Peter Oppenheimer told CNBC Europe’s “Squawk Box” on Monday that a combination of an improving economy with low inflation and interest rates set the scene “for a pick-up in profitability and equity prices” over the next year and beyond.

He forecast the U.S. economy would grow 3.8 percent at an annualized rate by next July but because inflation was so low and the output gap still large, interest rates could stay low probably until early 2016.

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U.S. Stocks Post Longest Slump in 1 Month on Europe Woes


Photographer: Scott Eells/Bloomberg

Spanish interest rates roused to a hefty seven percent. Exxon Mobil Corp. (XOM) andCaterpillar Inc. (CAT) dropped at least 1 percent in their stock prices. Payment networks Visa Inc. (V) and MasterCard Inc. fell at least 2.5 percent after being downgraded at UBS AG. What is going on in the business world marked by the drop of Standard & Poor Index? A joint report done by Bloomberg journalists Rita Nazareth and Julia Leite will bring lights to these issues.

The Standard & Poor’s 500 Index (SPX) fell, poised for the longest slump in more than a month, after a jump in Spanish yields above 7 percent intensified concern about Europe’s crisis and as investors awaited Alcoa Inc.’s results.

Alcoa, which begins the second-quarter earnings season after the market close, slid 0.7 percent. Exxon Mobil Corp. (XOM) andCaterpillar Inc. (CAT) dropped at least 1 percent to pace losses among the biggest companies. Payment networks Visa Inc. (V) and MasterCard Inc. fell at least 2.5 percent after being downgraded at UBS AG.Amerigroup Corp. (AGP) surged 38 percent as WellPoint (WLP) Inc. agreed to buy the company for $4.9 billion in cash.

The S&P 500 slid 0.4 percent to 1,349.71 at 10:46 a.m. New York time. The benchmark measure for U.S. equities dropped 1.8 percent in three days, the longest losing streak since June 1. The Dow Jones Industrial Average lost 54.49 points, or 0.4 percent, to 12,717.98. Trading in S&P 500 companies was 26 percent below the 30-day average at this time of day.

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Wahlberg, Wintour, Matt And Kim, Lasry, Pruzan: Scene

Billionaire Marc Lasry, Avenue Capital Chairman, co-founder and CEO, was the guest of Bloomberg TV’s Stephanie Ruhle on “Market Makers” today. Marc Lasry has $13 billion in assets under management.

Marc Lasry doesn’t think Europe will blow up. He sees several opportunities to invest in Europe. Click on the link to watch the video.

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Hedge Fund Manager James Chanos on His Big Short Position in China

“Shorting is not a criminal trial. It doesn’t have to be beyond a reasonable doubt. There just has to be a preponderance of evidence.” — James Chanos, February 2011 interview

“We certainly weren’t the first on this idea,” Chanos tells me at his offices in April of 2011 about the biggest short position of his life: The People’s Republic of China. Chanos first spoke publicly about his grand stake in China over a year and a half ago on CNBC’s Squawk Box in December 2009. “Right now, we’re as bearish on China as we’ve ever been,” he says. He followed that with a presentation at St. Hilda’s College, Oxford in January 2010, “The China Syndrome: Warning signs ahead for the global economy.

Chanos argued that China, fearing a sharp slowdown from the financial crisis, pumped credit into asset growth — mainly real estate but new roads and high-speed rail, too. There were “classic pockets of overheating, of overindulgence” he said in his presentation. Fixed asset investments as a percentage of China’s gross domestic product (GDP) were exceeding 50 percent — a “sh-a chén bào” (sandstorm) of money, he said. The stimulus was massive: $586 billion, or 14 percent of GDP (the U.S. package was $787 billion, or 6 percent of GDP). With state-owned enterprises controlling 50 percent of industrial assets, and not being driven by the need to make profits, and local party officials dictating the real estate development process, large-scale capital projects were growing “sillier by the day,” including rising industrial and manufacturing overcapacity. There were empty cities, such as Ordos, and lonely malls, such as the New South China Mall. News reports showed new buildings toppling from shoddy construction. It was the latest chapter in China’s history of credit-fueled booms and busts. China was “letting a thousand Dubais bloom,” he quipped. “Go to Dubai and see what happened. It was… what I call the ‘Edifice complex.'”

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Ackman Sends Wake-Up Call To Sleepy Canada Boardrooms

William Ackmans triumph at Canadian Pacific Railway Ltd. (CP) may echo across boardrooms far from the railroad’s Calgary headquarters.

In a Canadian corporate culture long resistant to activist shareholders, the U.S. hedge-fund manager sounded a rousing wake-up call by ousting a chairman, a chief executive officer and four directors, said Karl Moore, professor of business strategy at McGill University in Montreal.

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How Boaz Weinstein and Hedge Funds Outsmarted JPMorgan


It was last November, and Mr. Weinstein, a wunderkind of the New York hedge fund world, had spied something strange across the Atlantic. In an obscure corner of the financial markets, prices seemed out of whack. It didn’t make sense.

It might seem remarkable that someone like Mr. Weinstein, a man virtually unknown outside of financial circles, could deal such a stinging blow to one of the world’s largest, most respected banks. Jamie Dimon, the chairman and chief executive of JPMorgan and a face of the banking establishment, is struggling to contain the damage from what he has called a “terrible, egregious mistake.” The loss — JPMorgan put it at $2 billion, but it may turn out to be $3 billion or more — has renewed calls for stronger financial regulation.

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