FT : Second Open SSL flaw discovered

Second Open SSL flaw discovered

A second serious flaw has been found in the security software used to protect about two-thirds of all websites from cyber criminals, a month after the first, called Heartbleed, prompted consumers across the world to change their passwords.
The vulnerability was reported on Thursday in the Open SSL software, best known as the technology behind the padlock shown next to a web address, but it had existed for up to 10 years.

The organisation behind the open source technology said companies now need to update their software again to prevent so-called “man-in-the-middle attacks”, where attackers can decrypt communication between a computer, and, for example, a public wifi network.
It is not known whether the flaw has been used, but attackers often pounce during the window after a vulnerability has been announced, and before every site has updated its software.
Nicholas J. Percoco, vice-president of strategic services at Rapid 7, a Boston-based cyber security company, explained the flaw probably affected “the majority of systems on the internet”.
“A man-in-the-middle attack is dangerous because it can allow an attacker to intercept data that was presumed to be encrypted between a client (for example, an end user) and a server (for example, the online bank),” he said. “This attack is also passive in nature and may not be detected by a client, server or network-based security controls.”
The flaw may not have been discovered for such a long time as the code behind the software is complex and few computer engineers are experts in it.
This latest discovery comes after the Heartbleed bug – one of the most significant breaches of internet security ever – was found in the same software at the beginning of April. The flaw enabled hackers to obtain any confidential data including passwords that were stored in a computer’s short-term memory.
After Heartbleed was announced, companies including Google, Amazon, Yahoo and Facebook rushed to update their software. Those which did not make it in time, including the Canadian tax authority and the UK parenting site Mumsnet, suffered attacks. US regulators warned of the risk of criminals impersonating online banking sites and stealing passwords.
However, Symantec, another cyber security company, stressed this bug was not as serious as Heartbleed because it was much harder to execute and relied on the computer and the server being vulnerable already. Symantec advised consumers to avoid using unsecured wifi, to change passwords regularly and not use the same password for different sites.
The non-profit organisation behind the widely used open source software has complained of being chronically under-resourced – before the Heartbleed bug announcement it ran on less than the equivalent of two full-time engineers.
Since then, Microsoft, Google and Salesforce are among a long list of technology companies that have formed the Core Infrastructure Initiative to fund Open SSL and other crucial building blocks of the internet.

>>> VeriFone beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs

--> PAY +3,32% in After Hours

VeriFone beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY14 EPS in-line, revs above consensus 

- Reports Q2 (Apr) earnings of $0.37 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.32; revenues rose 8.6% year/year to $467 mln vs the $443.42 mln consensus.
- Co issues downside EPS guidance for Q3, sees EPS of $0.33-0.34, excluding non-recurring items, vs. $0.37 Capital IQ Consensus Estimate; sees Q3 revs of $455-460 mln vs. $453.82 mln Capital IQ Consensus Estimate.
- Co issues in-line EPS guidance for FY14, sees EPS of $1.42-1.44 vs. $1.43 Capital IQ Consensus Estimate; sees FY14 revs of $1.825-1.835 bln vs. $1.8 bln Capital IQ Consensus Estimate.

>>> Transformation Initiatives
- In April and June of 2014, VeriFone approved restructuring plans in order to support its transformation initiatives. In connection with these restructuring plans, the company will reduce headcount by approximately 500 by calendar year end 2014. VeriFone expects to reinvest a substantial portion of the savings from these actions to improve its operational infrastructure and invest in its strategic growth initiatives.

>>> Diamond Foods misses by $0.06, reports revs in-line

Diamond Foods misses by $0.06, reports revs in-line  

- Reports Q3 (Apr) earnings of $0.11 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.17; revenues rose 3.2% year/year to $190.9 mln vs the $191.72 mln consensus.
- Despite headwinds associated with tree nut commodity costs in fiscal 2014 that adversely impacted the Nuts segment; the Company expects to realize an increase in Adjusted EBITDA year-over-year.

WSJ : How Hedge Funds Are Trading the ECB’s Moves

How Hedge Funds Are Trading the ECB’s Moves

The euro’s strength over the past two years–seemingly in contrast to the bloc’s stuttering economy–has baffled hedge funds and other investors alike. But that may be about to end. Thursday’s package of stimulus measures from the European Central Bank has pleased some hedge funds, who think the single currency could finally be peaking. Managers also think that the bank’s actions could be good for so-called risk assets–stocks and bonds. To be fair, the euro was stubbornly resilient in the face of ECB President Mario Draghi‘s measures, but it has driven lower since he began promising action last month and at $1.364 today against the dollar it remains below it’s year-to-date peak of $1.399, hit on May 8.

Aaron Smith, managing director of Pecora Capital in Switzerland, which rose 14.2% last year:

“There’s definitely an opportunity from a trading perspective… U.S. interest rates will start to pick up and euro rates will stay low or go lower. That’s bearish for the euro and bullish for the dollar.”

He has shorted the euro and the yen and bought gold futures. “Gold becomes relatively more attractive as interest rates fall in Europe. What’s the point in sitting in euros earning nothing? The euro at $1.35 can potentially come off much further. It looks like a new trend is emerging.”

Philippe Gougenheim, CEO of Swiss-based Gougenheim Investments which runs $50 million and whose portfolios are up 22% so far this year:

“We’ll probably not see $1.39 or $1.40 again (in the euro)… I don’t know what will be the bottom, but I’m quite confident we’ll not see $1.40. I’m short euro/dollar… I’ve been selling December maturity calls on euro/dollar.

“I was long the Dax and I took profits above 10,000 [which it hit today, as Mr. Draghi was revealing his measures]. This was good for risk assets, but it’s not easy to buy before the (U.S.) unemployment figure tomorrow. We’ll probably re-enter our long position.”

A manager at a hedge fund firm running more than $8 billion in assets, who asked not to be named:

“This is definitely good news for risk assets. They’re trying to improve the supply of credit to improve lending in the real economy… This was positive. The ECB is coming good in doing whatever it takes… It’s positive for credit portfolios.

“A more activist ECB has shown it is committed to act further if needs be. That certainly should be positive in achieving its goals, one of which is a weaker currency.”

Chris Morrison, strategist for Omni Partners’ Macro hedge fund. Omni manages $650 million in assets:

“The ECB can do either very blunt (things) such as rate cuts or QE, or more targeted stuff. For us to go short (the euro) there would have to be more of the former and less of the latter.

“He (Draghi) is saying (that he’s not finished), but he’s got to back that up. QE is in a drawer that is shut and there’s a German foot on that drawer keeping it shut. When is it going to happen? It’s not striking me as happening in the next two or three meetings. It was about the ECB crossing the Rubicon and it didn’t.”

Omni bought some euro against the dollar and sold the Dax index on Thursday.

Pedro de Noronha, managing partner at Noster Capital, which runs $110 million:

“I certainly think it is a good start. (It) should be good for risk assets, but one has to keep in mind that the world economy is already quite “high” on steroids (aka QE) and despite the fact that this should be a positive, it begs the question of how stretched things are to the upside already… (I’m) not adding to my risk here, and (I) have been raising the cash portion of my portfolio lately.” He added that the euro is nearing its peak.

>>> Closing Commodities: Gold Rises 0.7%, Crude Oil Falls Modestly

Closing Commodities: Gold Rises 0.7%, Crude Oil Falls Modestly

* August gold came off its session low of $1243.00 per ounce and rallied to a session high of $1257.90 per ounce in early morning action after the European Central Bank announced several easing measures.
* The ECB lowered all three of its interest rates and said preparations for purchases of asset-backed securities have begun. The yellow metal consolidated near the $1254.00 per ounce level for the remainder of the session and settled with a 0.7% gain at $1253.50 per ounce.
* July silver also popped on the announcement and touched a session high of $19.16 per ounce. It eventually settled at $19.09 per ounce, or 1.5% higher.
J* uly crude oil traded in negative territory for most of today's floor trade. It brushed a session high of $102.75 per barrel in late morning action after trading as low as $101.57 per barrel earlier in the session. It quickly retreated back into the red and eventually settled with a 0.1% loss at $102.51 per barrel.
* July natural gas sold off to a session low of $4.59 per MMBtu following inventory data that showed a build of 119 bcf when a smaller build of 114-116 bcf was anticipated. However, buyers stepped in and took prices back into positive territory by afternoon action. Natural gas climbed as high as $4.72 per MMBtu and settled with a 1.1% gain at $4.59 per MMBtu.

>>> Japan life insurers are increasing purchases of foreign currency-denominated

Japan life insurers are increasing purchases of foreign currency-denominated bonds without hedging against exchange risk - Nikkei

- The move to buy more unhedged foreign debt is being caused by the weak yen. 
- Meiji Yasuda Life Insurance plans to increase its foreign bond investments by ¥320B, with about 60% left unhedged, while Sumitomo Life Insurance plans to boost unhedged foreign bond holdings by ¥100B. Dai-ichi Life Insurance is expected to grow its unhedge foreign bond holdings to ¥400B