How NSA Surveillance Will Crimp Tech Profits

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Jan. 17 (Bloomberg) -- Information Technology and Innovation Foundation's Daniel Castro and Bloomberg Contributing Editor Jeff Hayzlett weigh in on the President's intelligence gathering speech. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Companies that ask for data like facebook, google, apple -- those companies can be more open and transparent.

However the fbi can still ask for information and i can come with a gag order.

So there is always a contingency here.

Talking about the contingencies -- jeffrey hayzlett, the former ceo of kodak.

I know you are listening to the president's speech.

Or did you fall asleep?

No, i did not fall asleep.

We got caught with our hand in the hr.

This is what every country is doing in the world.

They are spying on us.

We are spying on them.

What he is trying to do is to position himself -- what can we do not to go all the way but stay more in the framework of the law.

This is political football, nothing more than that.

They are not going to change the law.

They are not going to do that.

In the state of the union address, that's 11 days away.

That is where it counts.

I was talking to richard falcon rap earlier.

He says that is where it is going to be.

Not 11 days before.

Daniel castro from the information technology and innovation foundation is joining us from atlanta.

Daniel, what is your take away?

Do you feel concrete things were said today?

I think there were potentially two objectives for the speech.

One was to reassure americans and foreign citizens they are not going to get spied on, and i think that is what the speech maybe did succeed in doing.

What a lot of companies are looking at, will this restore a balanced playing field for u.s. companies trying to operate abroad in foreign markets?

With all the concern about nsa putting backdoors or weaknesses in u.s. security products and tech products, we are not able to compete right now.

The president really did not address that issue in today's speech.

Daniel, i don't know if i buy that.

This is a jewel to sell more.

We are really good at those activities.

-- this is a tool to sell more.

This is an opportunity to sell more and even better.

No, i don't think so.

The past few months we have had revelation after revelation that the nsa is involved in putting backdoors and products, coursing companies to lower the security and what they were selling.

Or even that the nsa knew about zero day attacks.

The israeli mossad has been doing this for a long time.

If you even look at china.

When i was the ceo of a fortune 100 company, i would not even turn on my computer or use my blackberry back then when i was in the country just because i knew people were looking.

If you look at a while way -- wawei, a chinese company, they have had huge problems selling abroad.

The government is not buying from them.

Many european companies will not buy from them.

They have pretty much given up on the u.s. market.

That is the same challenge that u.s. companies now face when they sell to foreign markets, and they shouldn't have to.

Now that we have entered this i.t. revolution, we have known since the 1970's, we can have much other security than we had in the past.

We can have the government working in cooperation with the private sector or opposing them.

For the past 10 years, they have been opposing them.

We have felt very secure about signing our personal data over to google, but not so much foreign governments.

And "we the people are made of gmail users.

If this is right there will be no significant negative reaction to obama's speech, and to the intelligence community can get back to this and this." the negative reaction to the revelations that edward snowden may -- some people said, i don't have a problem with it.

I'm not doing anything bad.

Maybe this is about creating a better understanding -- what information are they collecting?

How naiàve do we have to be to think this is not going on?

If you say thermo nuclear device on a telephone call to anyone in the country -- luckily, i have never said that.

And if you were, and having come from a strong military backpack, i would want to know these conversations were going on.

I -- having come from a strong military background, i would want to know these conversations were going on.

Ibm reported in the third quarter they had seen a decline in sales.

They were blaming it on the nsa.

And it is growing a lot faster than foreign capital.

I do not think that the decline in sales had anything to do with that.

I do not think that was in there for and look in -- forward- looking items at all.

I think they were using an excuse.

Danielle, do you think we will see free trade here in digital goods or -- daniel, do you think we will see free trade here in digital goods or push for free trade?

We expect our intelligence agencies to gain information under certain conditions.

The question is, can we set up growth so it is more or less the same in the u.k. or germany or australia so it does not matter where your data is stored.

I think that is a reasonable

This text has been automatically generated. It may not be 100% accurate.

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