An anonymous reader quotes a report from Ars Technica: Just two days after the FBI said it could not get into the Sutherland Springs shooter's seized iPhone, Politico Pro published a lengthy interview with a top Department of Justice official who has become the "government's unexpected encryption warrior." According to the interview, which was summarized and published in transcript form on Thursday for subscribers of the website, Deputy Attorney General Rod Rosenstein indicated that the showdown between the DOJ and Silicon Valley is quietly intensifying. "We have an ongoing dialogue with a lot of tech companies in a variety of different areas," he told Politico Pro. "There's some areas where they are cooperative with us. But on this particular issue of encryption, the tech companies are moving in the opposite direction. They're moving in favor of more and more warrant-proof encryption." "I want our prosecutors to know that, if there's a case where they believe they have an appropriate need for information and there is a legal avenue to get it, they should not be reluctant to pursue it," Rosenstein said. "I wouldn't say we're searching for a case. I''d say we're receptive, if a case arises, that we would litigate."

In the interview, Rosenstein also said he "favors strong encryption." "I favor strong encryption, because the stronger the encryption, the more secure data is against criminals who are trying to commit fraud," he explained. "And I'm in favor of that, because that means less business for us prosecuting cases of people who have stolen data and hacked into computer networks and done all sorts of damage. So I'm in favor of strong encryption." "This is, obviously, a related issue, but it's distinct, which is, what about cases where people are using electronic media to commit crimes? Having access to those devices is going to be critical to have evidence that we can present in court to prove the crime. I understand why some people merge the issues. I understand that they're related. But I think logically, we have to look at these differently. People want to secure their houses, but they still need to get in and out. Same issue here." He later added that the claim that the "absolutist position" that strong encryption should be by definition, unbreakable, is "unreasonable." "And I think it's necessary to weigh law enforcement equities in appropriate cases against the interest in security," he said.

"Earlier this week, a report in The New York Times and a blog post on Medium drew a lot of attention to a world of strange and sometimes disturbing YouTube videos aimed at young children," reports The Verge. "The genre [...] makes use of popular characters from family-friendly entertainment, but it's often created with little care, and can quickly stray from innocent themes to scenes of violence or sexuality." YouTube is cracking down and will now age restrict videos that violate its policy. From the report: The first line of defense for YouTube Kids are algorithmic filters. After that, there is a team of humans that review videos which have been flagged. If a video with recognizable children's characters gets flagged in YouTube's main app, which is much larger than the Kids app, it will be sent to the policy review team. YouTube says it has thousands of people working around the clock in different time zones to review flagged content. If the review finds the video is in violation of the new policy, it will be age restricted, automatically blocking it from traveling to the Kids app. YouTube says it typically takes at least a few days for content to make its way from YouTube proper to YouTube Kids, and the hope is that within that window, users will flag anything potentially disturbing to children. YouTube also has a team of volunteer moderators, which it calls Contributors, looking for inappropriate content. YouTube says it will start training its review team on the new policy and it should be live within a few weeks. Along with filtering content out of the Kids app, the new policy will also tweak who can see these videos on YouTube's main service. Flagged content will be age restricted, and users won't be able to see those videos if they're not logged in on accounts registered to users 18 years or older. All age-gated content is also automatically exempt from advertising. That means this new policy could put a squeeze on the booming business of crafting strange kid's content.

An anonymous reader quotes a report from Tom's Hardware: Intel's Management Engine (ME) technology is built into almost all modern Intel CPUs. At the Embedded Linux Conference, a Google engineer named Ronald Minnich revealed that the ME is actually running its own entire MINIX OS and that Google is working on removing it. Due to MINIX's presence on every Intel system, the barebones Unix-like OS is the most widely deployed operating system in the world. Intel's ME technology is a hardware-level system within Intel CPUs that consists of closed-source firmware running on a dedicated microprocessor. There isn't much public knowledge of the workings of the ME, especially in its current state. It's not even clear where the hardware is physically located anymore.

What's concerning Google is the complexity of the ME. Public interest in the subject piqued earlier this year when a vulnerability was discovered in Intel's Active Management Technology (AMT), but that's just a software that runs on ME--ME is actually an entire OS. Minnich's presentation touched on his team's discovery that the OS in question is a closed version of the open-source MINIX OS. The real focus, though, is what's in it and the consequences. According the Minnich, that list includes web server capabilities, a file system, drivers for disk and USB access, and, possibly, some hardware DRM-related capabilities. It's not known if all this code is explicitly included for current or future ME capabilities, or if it's because Intel simply saw more potential value in keeping rather than removing it.

schwit1 shares a report from The Hill: The amendment, Section 801 of the National Defense Authorization Act (NDAA), would help Amazon establish a tight grip on the lucrative, $53 billion government acquisitions market, experts say. The provision, dubbed the "Amazon amendment" by experts, according to an article in The Intercept, would allow for the creation of an online portal that government employees could use to purchase everyday items such as office supplies or furniture. This government-only version of Amazon, which could potentially include a few other websites, would give participating companies direct access to the $53 billion market for government acquisitions of commercial products. "It hands an enormous amount of power over to Amazon," said Stacy Mitchell of the Institute for Local Self-Reliance, a research group that advocates for local businesses. Mitchell said that the provision could allow Amazon to gain a monopoly or duopoly on the profitable world of commercial government purchases, leaving smaller businesses behind and further consolidating the behemoth tech firm's power.

schwit1 adds: "Well, this is a two-edged sword, isn't it? Government spends too much and takes too long to buy its simple office needs, but streamlining that process and cutting costs puts more money in the pocket of Jeff Bezos."

An anonymous reader quotes a report from Motherboard: WikiLeaks published new alleged material from the CIA on Thursday, releasing source code from a tool called Hive, which allows its operators to control malware it installed on different devices. WikiLeaks previously released documentation pertaining to the tool, but this is the first time WikiLeaks has released extensive source code for any CIA spying tool. This release is the first in what WikiLeaks founder Julian Assange says is a new series, Vault 8, that will release the code from the CIA hacking tools revealed as part of Vault 7. "This publication will enable investigative journalists, forensic experts and the general public to better identify and understand covert CIA infrastructure components," WikiLeaks said in its press release for Vault 8. "Hive solves a critical problem for the malware operators at the CIA. Even the most sophisticated malware implant on a target computer is useless if there is no way for it to communicate with its operators in a secure manner that does not draw attention." In its release, WikiLeaks said that materials published as part of Vault 8 will "not contain zero-days or similar security vulnerabilities which could be repurposed by others."

Qualcomm is now challenging rival Intel in the rapidly changing data center market. From a report: The company is now selling its long-awaited Centriq 2400 Arm-based server processor that is aimed at the fast-growing cloud market and that Qualcomm officials say beats Intel in such crucial areas as power efficiency and cost. Officials from Arm and its manufacturing partners have for several years talked about pushing the Arm architecture into the data center as an alternative to Intel, and some manufacturers like Cavium and Applied Micro in recent years have rolled out systems-on-a-chip (SoCs) based on the 64-bit Armv8-A design. However, Qualcomm represents the most significant Arm chip maker in terms of scale and resources to challenge Intel, which holds more than 90 percent of the global server chip market. Qualcomm's Centriq chips offer up to 48 single-threaded cores running up to 2.6GHz and are manufactured on Samsung's 10-nanometer FinFET process. The processors sport a bidirectional segmented ring bus with as much as 250G bps of aggregate bandwidth to avoid performance bottlenecks, 512KB of shared L2 cache for every two cores and 60MB of unified L3 cache. There also are six channels of DDR4 memory and support for up to 768GB of total DRAM with 32 PCIe Gen 3 lanes and six PCIe controllers. They also support Arm's TrustZone security technology and hypervisors for virtualization.

Engineers at marketing research firm IHS Markit cracked open the base version iPhone X, which Apple is selling at $999, this week. After preliminary physical dissection, the firm estimated that the iPhone X carries a bill of materials of $370. From their findings: With a starting price of $999, the iPhone X is $50 more than the previous most expensive iPhone, the 8 Plus 256 GB. As another point of comparison, Samsung's Galaxy S8 with 64 GB of NAND memory has a BOM of $302 and retails at around $720. "Typically, Apple utilizes a staggered pricing strategy between various models to give consumers a tradeoff between larger and smaller displays and standard and high-density storage," said Wayne Lam, principal analyst for mobile devices and networks at IHS Markit. "With the iPhone X, however, Apple appears to have set an aspirational starting price that suggests its flagship is intended for an even more premium class of smartphones." The teardown of the iPhone X revealed that its IR camera is supplied by Sony/Foxconn while the silicon is provided by ST Microelectronics. The flood illuminator is an IR emitter from Texas Instruments that's assembled on top of an application-specific integrated circuit (ASIC) and single-photon avalanche diode (SPAD) detector from ST Microelectronics. Finisar and Philips manufacture the dot projector. IHS Markit puts the rollup BOM cost for the TrueDepth sensor cluster at $16.70.

The outsourcing industry in the Philippines, which has dethroned India as the country with the most call centers in the world, is worried that the rise of artificial intelligence (AI) will eat into the $23 billion sector. From a report: AI-powered translators could dilute the biggest advantage the Philippines has, the wide use of English, an industry meeting was told this week. Other AI applications could take over process-driven jobs. The Philippines' business process outsourcing (BPO) industry is an economic lifeline for the Southeast Asian nation of 100 million people. It employs about 1.15 million people and, along with remittances from overseas workers, remains one of the top two earners of foreign exchange. "I don't think our excellent command of spoken English is going to really be a protection five, 10 years from now. It really will not matter," said Rajneesh Tiwary, chief delivery officer at Sutherland Global Services.

A reader shares an Economist article: More people will trade in Bitcoin and that means more demand, and thus the price should go up. But what is the appeal of Bitcoin? There are really three strands; the limited nature of supply; fears about the long-term value of fiat currencies in an era of quantitative easing; and the appeal of anonymity. The last factor makes Bitcoin appealing to criminals creating this ingenious valuation method for the currency of around $570. These three factors explain why there is some demand for Bitcoin but not the recent surge. The supply details have if anything deteriorated (rival cryptocurrencies are emerging); the criminal community hasn't suddenly risen in size; and there is no sign of general inflation. A possible explanation is the belief that blockchain, the technology that underlines Bitcoin, will be used across the finance industry. But you can create blockchains without having anything to do with Bitcoin; the success of the two aren't inextricably linked. A much more plausible reason for the demand for Bitcoin is that the price is going up rapidly. People are not buying Bitcoin because they intend to use it in their daily lives (Editor's note: the link could be paywalled; alternative source). People are buying Bitcoin because they expect other people to buy it from them at a higher price; the definition of the greater fool theory.

An anonymous reader quotes a report from Bloomberg: The so-called retail apocalypse has become so ingrained in the U.S. that it now has the distinction of its own Wikipedia entry. The industry's response to that kind of doomsday description has included blaming the media for hyping the troubles of a few well-known chains as proof of a systemic meltdown. There is some truth to that. In the U.S., retailers announced more than 3,000 store openings in the first three quarters of this year. But chains also said 6,800 would close. And this comes when there's sky-high consumer confidence, unemployment is historically low and the U.S. economy keeps growing. Those are normally all ingredients for a retail boom, yet more chains are filing for bankruptcy and rated distressed than during the financial crisis. That's caused an increase in the number of delinquent loan payments by malls and shopping centers. The reason isn't as simple as Amazon.com Inc. taking market share or twenty-somethings spending more on experiences than things. The root cause is that many of these long-standing chains are overloaded with debt -- often from leveraged buyouts led by private equity firms. There are billions in borrowings on the balance sheets of troubled retailers, and sustaining that load is only going to become harder -- even for healthy chains. The debt coming due, along with America's over-stored suburbs and the continued gains of online shopping, has all the makings of a disaster. The spillover will likely flow far and wide across the U.S. economy. There will be displaced low-income workers, shrinking local tax bases and investor losses on stocks, bonds and real estate. If today is considered a retail apocalypse, then what's coming next could truly be scary.