NSA Surveillance Illegal? : Bloomberg West (12/16)

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Dec. 16 (Bloomberg) -- Full episode of "Bloomberg West." Guests: Treadstone 71 Chief Intelligence Officer Jeff Bardin; StellaService CEO Jordy Leiser; Intel Worldwide User Experience Manager Matt Dunford; New Yorker Magazine Culture Critic Paul Goldberger and Bloomberg’s Tom Giles and Michael Riley. (Source: Bloomberg)

Live from pier third in san francisco and new york city, welcome to "bloomberg west" will read covered become news that are reshaping our world.

Our focus is innovation and the future of this and this.

Let's get straight to the rundown.

A federal judge caused a u.s. government selection of phone records almost orwellian.

It is a lawsuit, saying the surveillance is probably unconstitutional.

It is called a phase print.

They can identify you in everything from unlocking your phone to targeting advertising.

The business behind facial identifications.

Google ads buying a firm that designs research robot like cheetah and big dog or the pentagon.

Is part of a project being led by a former android head in the rubin.

There are renew questions about whether the nsa's against technology collection of genetic records is legal.

Probably violated the fourth amendment which protects americans within a reasonable search and seizure.

They can move forward.

All this comes as president obama prayers to host a number of executives at the white house tomorrow.

They will surely be talking about it.

For more let's ring in julianna goldman in washington.

What an important time for these guys to be in the white house.

That is right.

The federal judge caught the program almost orwellian saying that it violates the earth -- the fourth amendment ban on unreasonable searches.

The district judge was a bush appointee.

He ordered the government to stop collecting data on the two plaintiffs and destroy the records.

They're likely to show the privacy interest outweighed the government interest when it comes to collecting this data here at you put the injunction on hold.

He said there are "significant national security interests at stake>" he is giving the government time to appeal which he said could take around six months.

The government does not have to stop the program until that d.c. court of appeals ruling and depending on what it says.

This is the first successful ruling against the government program sent the leaks by edward snowden.

Up until this point, courts including the foreign intelligence savings court which request the metadata said the program is constitutional.

What is the administration's reaction?

Lacks nothing typical yet.

The white house is referring questions to the justice department.

The justice department said they are reviewing the ruling.

In the past, it ministration has argued that the fourth amendment does not protect metadata.

Not be content.

It is also argued that metadata collection is a crucial pool against terrorism.

They cannot get a case where they stop an imminent terrorist attack.

This is the timing that is interesting.

They will be meeting with a number of tech executives including marissa mayer, costello and sheryl sandberg.

I'm sure they will get an earful.

Julianna goldman in washington, d.c. thank you very much.

I want to bring in a special roundtable.

Michael riley cover security from bloomberg is this week and joins us from washington dc jeff barton joins us via sky pe.pe.

They are selling the gear to the nsa to collect information.

Could this slowdown anytime?

This is going to be a long core process.

The nsa will fight this under the justice department.

We have a long way to go.

This is an incredibly valuable to.

Ol.

they cannot come up with one example where this stopped an attack.

This is an open court.

There are certain classified materials they cannot present in this form.

I'm sure there will point that out.

We cannot tell you.

Trust does.

It is interesting.

Let me ask you about the business behind us.

What can you tell us about how this is going and where it is growing?

A new data center out in utah is in expansion a massive amounts of storage.

Every phone call of every citizen in the u.s. that is an amazing amount of data.

Whether they are using it or not is not relevant.

It is amazing how much they have to collect in the storage.

Every phone call that comes out means another set of own calls.

Exponential growth.

The processing power to understand all that in the storage.

When you look at the courts, this court spoke with a very strong voice in the pulmonary ruling.

They did.

I actually agree with them.

Every phone call you made, the location a came from, the length of time, the number you called.

The frequency of it.

It is just an amazing amount of data.

Do they really need that?

Do they need to target the people they are really after and get to the content.

The collection of this lead to things down the road in the future that can be used against innocent citizens for things that could potentially be used as false patterns in the future.

When you look at this story, the drip drop of the snowden leaks continue to keep this thing on the front page.

This is continue to have a business impact with the companies involved?

Absolutely.

He released a statement shortly after this was fouled.

This is a vindication of what i did.

I believe this program when not be found here constitutional in an open court.

He took it out of the secret court of the pfizer around and put it in the open light of day.

The judge said exactly that.

He said this is a program that if you look at it there's no way it passes muster under the fourth amendment.

It is a really interesting turn.

It'll be a question of whether or not he should be viewed as a traitor or an activist was doing something out of a sense of duty.

It does.

The judge is likely to side with the constitution.

Courts are supposed to be open.

It may be an interesting thought as well.

Michael o'reilly and jeff barton.

Thank you very much.

Still to come, should companies be able to use facial recognition technology to target you with advertisements?

Who it is, how it works, and all about facial recognition next.

? major companies are looking into facial recognition technology.

It can be used for targeted ad to security.

They'll also be working in regulation, taking part in meetings early next year.

This means they can do what ever they want.

It is interesting that this is happening at once.

They're working with similar technologies.

With no standards in place.

What the commerce wants to do is get ahead of that.

It behooves the tech companies to have their own say in this matter.

They want there to be actual laws in place that will protect our civil liberties.

One step at a time.

Lockheed martin, i think is interesting.

I can see lockheed martin as this.

Surely the rtr.

He has a different purpose for is.

Every year this seems to be more realistic.

You can have a scenario where a local business will say cory johnson just walked by.

This is more my style.

As you're walking by the business.

There is a security component.

Apple is using thumbprint recognition.

Why not take it a step further?

We're not letting this person onto the ipad.

Let's talk about how this works.

The technology behind it is very much like a fingerprint.

The computer read the face, the figures were the eyes and lips are an run out rhythms to look for a pattern to do that and then they extract the things that are different about each phase.

What is interesting about it is that the processing power exists all over the place.

You cannot do this on a phone five years ago.

Now you could.

The chips are becoming much more powerful.

They're able to process much more.

Is doesn't rise of these computers will become that much powerful.

What are the security and privacy implications?

Do you want people to know that much about you as you're walking by?

Great to see you.

Thank you very much.

Google is grabbing another company for its robotic arsenal.

He is acquiring boston dynamics for a company known for the animal themed machines i can run and walk like the real thing.

If you're listening to the sound, that is a robotic dog running like a cheetah.

This is the eighth robotics company google has bought in the last six months.

All part of a new special project.

On today's early edition of "bloomberg west" we spoke with john leonard.

He started by asking him exactly just what these robotics can do.

They specialize in locomotion, how a robot moves through the world.

This captures their imagination.

It is on the cutting age of what you can do in a challenging environment.

We are looking at how they move.

You should not be necessarily buying google.

I do know they have done a number of contracts for the military.

They're building a robot called atlas that is you something in the darker robotics challenge which is happening in florida.

My colleagues are leading the m.i.t. team.

There are about 15 teams competing for a price to build a robot that can use tools and climb up ladders and chided vehicles and maybe respond in a disaster scenario.

These are robots that can interact with the world in a capable way.

It would be relevant to the military but there are a range of civilian applications.

Anything that means going out to the field into dust -- in disaster response situations.

Interesting.

John, yet spoke with the head of mergers and acquisitions.

They could be working toward a production line.

Maybe it will all be partisan long-term global -- google manufacturing supply chain here at what is looking most likely?

They could track down some of the amazon drones.

I think what is really important here, there are a couple of things to highlight.

Google does make a lot of acquisitions at least one from month -- once a month.

We shouldn't not tie about what google has been traditionally.

In many years, many deals were building a moat around the advertising business.

The deals they do now are powering the internet.

All of these are google looking for it next leg of growth.

This is more like a new version of ge, looking for the new legs of growth as opposing an exact way to tie this back to what google has been in the past.

We do not know just yet.

They have done a lot of robotics deals.

This is a company that is ambitious and always has been figuring out where its future will take it.

Dimensions the founder must be very passionate about his company.

He gave up his tenure at m.i.t. do work on this.

What do you imagine compels them to sell to google?

I cannot imagine.

I know that m.i.t. faculty want to make impacts on the world.

My guess guess is that investment would help them create a better impact.

The one way i view this as a long-term investment in the hard court technologies of robotics and if i use the analogy of a cell chiding being hit will, is something i follow very closely.

They went and hired the very best people in the world.

Several of the recent acquisitions of getting some of the top superstar talent in the world affiliated with seven these challenges.

Where it may lead.

I have to think this has a value.

That was john leonard and jon erlichman with emily chang.

"bloomberg west" will be right back.

? we have some breaking news.

Charter communications looks like there putting a hit together to go after time warner cable.

Now they have financing for $20 billion.

They are lining up to help linda charter as ministry by doing to get this done.

They've offered $135. the offer itself is less.

It looks like charters going to go off with a proxy battle.

The battle for time warner cable is on.

Goldman sachs and credit suisse are monitoring that story.

It is also the season for holiday shopping.

Online retailers are hard at work are also seeing returns and handling customer complaints.

Stella services measures how well all of these companies are doing.

They then sell the information.

Talk soon about the quality of the holiday season.

It has an interesting.

Quality of service and speed.

Then you start to see some new innovating things and am a people to try to compete with amazon.

Wanted talk about apples.

It is not about me.

It is about me at the zap thpos.

They were gearing up to have everybody on the phone.

They famously let customers call and talk for as long as they want and spend as much time as -- they want.

A great quite the numbers you are saying that it is working for them and a few others.

It is.

They've always had a different take on the world than most retailers.

They want you to call.

They want you to call and most would view that as a marketing expense.

It drives people to come back.

Who is flooding right now?

The walmart site went down.

Health care got more attention.

Walmart probably had more problems.

The traditional big box retailers have had difficulty trying to keep up with the web only players.

This is going to hurt them eventually.

Who is getting right in the retail space?

Sears is one of the companies that have started to take their stores and turn them into distribution centers.

See what amazon has been doing, stores like macy's and sears are starting to use those the doma centers -- use the storage as the film and centers.

-- fufilment center.

Amazon is great as always.

They are so spread out baking you the item almost faster than anyone else.

In terms of general strength, are we seeing that?

The retail numbers, it has been good or bad.

It has been a pretty good season.

Thank you very much.

"bloomberg west" coming up.

? we focus on innovation in technology.

Let's get straight to the top headlines.

Twitter is tweaking before my teammate adds look more prominent on mobile devices.

They normally run on the side of the twitter timeline.

Violent memory has fired the ceo.

They lost 70% of the loss of the ceo.

Even larger than the revenues, sucking off the balance sheet as well.

A second film, the desolation of smog.

It is raking in over $73 million.

It has a jot from the previous hobbit movie.

Speaking at the box office, miramax is hoping to find some hollywood goal by reuniting with the studios original founders.

They have a recent agreement that will bring the weinstein brothers back to miramax.

Jon erlichman is in l.a. with the new hollywood.

This is a wonderful christmas he story.

They should make a movie about it.

You know what?

It is a gray business story.

We know how passionate the weinstein brothers had been about this miramax of randa business started in 1979. they had a great run of independent films in the 80s. it ends up as part of the business.

They did not leave on the friendliest of terms and has started the weinstein company and disney sold the miramax business to a group of investors.

All along, everyone has wondered where they come together in some way shape or form.

Here they are again.

Nicola decades we could see them thinking about some creative ways to tap into this library that is miramax for film and television.

Specifically, what kind of projects could we see for miramax?

A range of stuff.

They are all ready talking about the idea of maybe a project i to goodwill hunting or others.

Harvey weinstein even suggesting maybe there could be another film could be tied to shakespeare in love.

The bigger business story is for a film library to maintain its value or to grow in value, a need to stay active.

The new owners of miramax had done a great job of making their money back by selling the digital rights, cutting deals with new platforms like netflix.

That is great.

If you're not able to go out and make sequels or roger asked tied to that library, people start to forget a little bit.

That can hurt on the value of what they had.

That is the big reason behind this deal.

They want to prove they can take some of the early miramax brands and get them out there in a big way it is good to see.

All the love in the room.

It is so much, even for hollywood.

We will do a buddy film soon.

I am back off.

You can be the good cop.

Celebrities joined forces last week was 70 biggest names in technology to encourage children's to dedicate one hour to learning or teaching computer sciences.

It is called an hour of code initiative.

President obama urging kids to take part in a youtube video.

Is it not just important for your future.

It is important for our country's future.

They want america to stay on the cutting edge we need young americans like you to master the tools and technology that will change just about the way we do everything.

L they got 50 million citizens to set down for an i are -- hour-long coding session.

One of five u.s. students participated.

To start by asking them how the event helped to expose more girls to computer science.

Aquatic more girls experienced computer science last week than in the history.

How are you encouraging girls?

How do you get teachers to do that going forward?

One of the great thing we do with the hour of code is we do not recruit the students.

We recruited the teachers.

Teachers have an even number of boys and girls.

We do not go after the girls.

The teachers did appear they brought in an equal ratio.

That is what you have here at the sole experience has given us renewed optimism in the potential of the american teacher.

The other people you have recorded personally, getting singled to join you.

Mark zuckerberg, build dates, jack orsi.

Have they given you -- bill gates, jack dorsey.

Have they given you be back?

We are twins.

Everybody we have asked has had such open armed embrace in this.

It is good for america.

It is good for the economy.

Very few people have thought this is not a good idea.

How do you get their continued support?

Do you need that?

We have a long-term plan.

It started about a year ago.

We wanted to start something to change the face of computer science.

This is not an easy task your schools do not know how to teach it.

There are nine of teachers to teach it.

Kids don't want to take it.

State education centers don't recognize it.

We have a long-term plan were recently have to change the rules, healthy schools, and make it cool.

The hardest part is how to make it cool.

Really?

How have they received it?

Is it like augusta do not want to take westmark are they excited?

We have had over the top, and i teacher saying they have been getting calls all week and from parents he said the girls have been doing this all weekend long.

How do you turn one hour into many hours of code for many years?

One is partnering with the school districts.

We announced tarnishes was chicago and new york.

Just today we not a program to get it===ive with thousand dollars every teacher who takes this and put it in the classroom.

We have a number of companies like mark zuckerberg and reid hoffman.

There is a whole bunch of founders in the tech industry.

How difficult has it been to work with school districts?

School district have red tape.

Said mark easier than others.

Chicago and new york have been super easy.

Others have not.

Oakland and seattle both have said it sounds interesting but they're not as sure.

I was just the one less question.

I have been buying gifts for some little kids.

I trouble finding stuff that i could give them which would encourage them or expose them to coding.

You have any ideas?

To encourage them to learn how to code?

There is a board game called "robot turtle." you are writing code that move the turtles on the board.

That is a rate weren't. you develop some apps of your own.

That was code.org speaking with emily chang.

Can a robot really predict if mobile devices will be a hit with humans?

Something so.

That is next on "bloomberg west" ." ? this is "bloomberg west"." drones may be ready to take off this week here at jeff bezos is testing delivery drones.

States are looking to get in on the action.

24 states buying for permission to build and run testing facilities for commercial drones.

They say it plans to select six sites this month.

It do not give out details at what kind of testing would be allowed.

Generally speaking, i would wear a hat for the next two months.

You do not want one of those things slamming into you.

Robots could be used to develop other devices.

It includes a robot called oculus that uses high-speed cameras to test user experiences on smartphones to figure out how much humans will love or hate them.

Joining me is the manager matt dunford.

We are glad to have you here.

I want to talk to you about robots.

So much robot news and just with google announcing the dynamics.

Why is there so much?

Science is going to continue moving forward.

Robots allow us to do things more economically than humans.

Like i was at an xbox of element lab probably early fall or spring.

One of the things to had the buttons.

They have this machine that would count it like a nail gun, thousands and millions of times to replicate the use that an xbox might go through.

Is that a robot?

Absolutely.

What is a robot?

It you tell me.

You are dude.

I brought a piece of the robot.

Does he know you ripped his hand off?

He's ok.

We bought one of -- brought one from our manufacturing lab.

This is the hand from the robot.

Only interact with pcs, this can do certain things that a normal human would do with a pc.

Do you want to demonstrate it for me?

Let's say i wanted to come to new york and find you here a bloomberg.

I might pull up a mapping application.

I would take my finger and move back and forth around the maps.

I may want to zoom in.

I may want to zoom out.

You have a pinch function.

We found we can automate that with a robot and instead of having to have hundreds of income in and test all of these different devices and tell us whether they liked them or not, we can do that testing with people one time, make a mathematical equation that the robot come back and test it on any tablet and tell us what people with about that tablet regardless of which operating system or device it might be.

At works with this robot already?

Absolutely.

I've never stricken -- shaken hands with a robot.

What it defines what a robot is?

Wow.

That is a wide-open question.

Lacks i feel like we talk about these things it is only a robot is it is anthropomorphic.

If it is a thing pushing a button on an xbox, we do not call that a robot.

As an engineer, icy robot in manufacturing plants whether they're building lawnmowers or taking wafers from one place to another.

It is still a robot.

You have these conveyors with the semiconductors where the entire wafer will sit and tire a big box in boxes move around.

What makes a not a conveyor belt?

I do not know the answer to that.

It is fine.

I was wondering if there was a distinction.

I have been talking about this all day.

Is is merely a function of moore's law that there is so much more possible.

Is there more about specific developments in robotics that it happened in the last five years?

This is helping them to get better.

As the computers get faster and we're able to make the transistor smaller in the manufacturing smaller, it allows you to shrink everything.

We can make devices now that make things smaller.

The smaller you can make them, the more sophisticated.

This could do the fix filing which like that the mandela funeral.

-- take simon would like at the mandela funeral.

Call it, i'm not going to do that.

Silicon valley's star headquarters.

Some of the biggest players in the star architects behind him and these incredible buildings.

That is next on "bloomberg west" ." ? this is "bloomberg west" and i'm cory johnson.

But very shows no signs of stopping as the ceo tries to do something to help the struggling company.

They are all leaving.

It follows the leaving of the chief financial officer, operating officer.

The last ceo as well.

It is enlisted only a blackberry.

But very did say they would lay off 40% of the work orders.

Silicon valley may be the nation's most important economic engine.

The area is famously ugly.

For the first time some of the biggest companies are building ambitious new headquarters including apple and facebook.

Google as well.

Paul goldberg took a look.

This was part of the best day.

A triptych -- a terrific author.

I spoke to him earlier about the evolution of silicon valley what it tells us about technology.

These are ordinary stripmall type places.

Silicon valley at the beginning was very opportunistic.

They started in garages.

When they moved, they took what office space they could find.

It was for the random.

One of the things your piece missed was intel's influence in this.

They have a corporate culture around being really cheap and not flashy in any way.

That is probably right.

You are right there.

It set a tone so some of the first big companies, once they grew big, do not do anything except expand the banality of little buildings they had to.

There are a lot of those.

They were also taking advantage of what grand rapids was offering in terms of her nature in the 1960s and 70s. you got it.

Now we have this situation where it is highlighted in your story and by steve jobs final.

Presenting this incredible design.

I say incredible because it's hard to imagine.

A job to set the tone for everything.

He knew how to up the ante.

He upped the ante in technology and the design of objects.

He wanted to do it in architecture as well.

Even apple's existing quarters are a little bit different from most of the others.

They are a little bit sleeker.

Not much but a little bit.

He really dreamed of something that would translate the apple aesthetic into an architectural scale.

The plans for this thing is on an old hp owned sites.

Which is ironic.

Probably not a running.

He admired the guys.

This i do not think it will be so great.

I admire the ambition of it.

I am really pleased that steve jobs wanted to raise the level of architectural ambition.

I do not think he fully understood that a building is not a gargantuan ipod.

It is not an object.

It is something much more complicated that involves a lot more inconsistency or a certain amount of mess.

This building is a perfect shape.

It is a huge enormous doughnut, bigger than the pentagon.

I do not think it will do so much to encourage interaction which is what both he and the architect norman foster say it is being designed to do.

We have frank gehry working on an interesting facebook object.

We have an amazon project which are not too fond of.

I thought it was also interesting that you really identify twitter as possibly the most interesting and important future of architecture.

Why?

What twitter is doing as a work environment is really good but not in itself that different from google and a lot of the other companies there.

They are designed loose, lively, pleasant, somewhat unstructured.

The real thing that makes twitter significant is that they took over three floors in an old furniture mart, an old industrial warehouse towel -- tight building in downtown san francisco.

It is very urban.

Silicon valley hate people outside of san francisco.

That is an urban building and an urban place.

I think it was a very different technology.

The old silicon valley hated the city and what it represented.

All the workers who were under 30 say they all want to live in the city.

The do not want to live in the valley.

A huge number of the starters -- start ups today are in the city, not in the valley.

We are at the beginning of a seismic shift.

That was paul goldberger.

We will be back with the bwest byte.

Jon erlichman is in los angeles.

What do you got?

820 8007 hundred 73. that is the number of itunes albums eon say sold --be beyconceonce sold.

She told everybody there instagram.

What is interesting is that it has frustrated some of her traditional retail heart nurse like target which has since come out and said we do not really want to sell her physical album now.

She's going to make that available to the broader retailers after a week of exclusivity for itunes.

That is an incredible number.

Platinum is one million.

It is darn near platinum after three days from only one retailer.

You are talking about not just some digital records but some records for itunes as well.

There you go.

We can all speak about it together.

Thank you very much.

You can get this information all the time a bloomberg.com.

We will see more for more -- we'll see tomorrow for more "bloomberg west"." ?

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

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