Transcripts For BLOOMBERG Street Smart With Trish Regan And

BLOOMBERG Street Smart With Trish Regan And Adam Johnson January 23, 2014

That a u. S. Senator is calling an investigation into is gations that the company a pyramid scheme. And Richard Sherman, his postgame interview has gone viral. Well focus on how to manage the message without jeopardizing sponsorship dollars. That was unbelievable. I was feeling for erin andrews in that one. Moments ago, we got news that the u. S. Attorneys office subpoenaed chris christis campaign for documents related to the bridgegate scandal. The got news that the u. S. Attorneys office subpoenaed chris christis campaign for documents related to the bridgegate scandal. The former Campaign Manager for president obama is here for the hour. David, this story is not going away, wont seem to go away. What is it going to mean for his ability, chris christis ability to raise funds toward a 2016 bid. I managed the campaign in new jersey. I can tell you, you dont want your campaign to get subpoenaed. I think at the end of the day, the story may hold up, it probably will. This is an enormous distraction. If you see some of the initial poll numbers, poll numbers this far out are somewhat meaningless. His strengths are to independent interview has gone viral. Well focus on how to manage the message without jeopardizing sponsorship voters that is where he has taken the biggest hit. If he is going to win the nomination, he has to rely on states with open primaries. He was just in florida this past weekend. People put it in the Rearview Mirror because theyre seeing politics as usual. Wow, a new jersey politician to trouble, who knew . There is a rally around the flag in the republican base. It may strengthen his actually with core republicans. He is getting attacked . Right, by the media. This investigation has gone on for a long there is a rally aro flag in the republican base. It may strengthen his actually with core republicans. He is getting attacked . Right, by the media. This investigation has gone on for a long time. Its clearly going to be very, time. Thats all people are going to hear about him. In the initial poll numbers, the one thing that is important, in the news for a i think he is never going to be the favorite of the tea party. To win the republican nomination, he has to get independent voters in states that allow that. Right now his brand has been tarnished there. He has to work hard to rebuild that. What does an administration do in crisis mode . Its hard. Its a massive distraction. Everyone close to him is now consumed with this. He has to govern, he is not a legislator. It gets you off point and off message. The question is not what he wants to do in his second term because he won the election by 22 percentage points. Now it is how do we deal with this mess that we find ourselves in. Governing daytoday, you have to say we got decisions to make. We have an agenda to execute. In terms of his planning for a president ial race, i assume thats where the real Collateral Damage is. People wont have the time to commit to that. They will be busy lawyering up and dealing with where this story is going. I want to turn to our other top story today. Hours ago, the Civil Liberties Oversight Board reviewed the findings of its report calling the end to the data Sweep Program calling it illegal. The world is increasingly Technology Dependent and terror concerns continue to rise. Can the balance between privacy and security ever be achieved. Joining us, the former commissioner on Cyber Security under president obama. Is now a managing director of global forensic at the firm alvarez and marshall. Hose, david, tom, lets start with the basics. Why is this group saying that the Data Collection itself is, in fact, illegal . What theyre suggesting is that there is a warrantless wiretapping occurring and too information gathering occurring in the u. S. As a whole. We need to remember that there are dozens of other countries who are actively pursuing u. S. Citizens in the same regard. Richard, the other critical part of this report is the conclusion that the Data Collection is actually not resulting in catching the people that they really want to catch. A couple things about this report. First, they dont actually alley there is warrantless wiretapping going on. They are talking about bulk telephone metadata. They are provided in bulk to the n. S. A. Right now is now a m to court records. The stat to you that permits is insufficient and it should be ended. Its not a unanimous consensus of all five members of this board. Two of them dissented on that key finding and the board did, in fact, go and say they found no abuse of government powers. They believe it was being implemented in good faith by the government. It is a relative important, it is very important, but relatively technical legal argument about the particular program. Could you change that . Could you go to the court and change it so you have the authority . You have to go to congress and the president has to sign it. The Current Program has been authorized by statute repeatedly and validated by federal judges over 15 times. Its a strongly held view by a very knowledgeable subset of the debate. Its on a very important program. Lets be clear. They are saying the statute as currently written isnt ufficient to authorize the program. But, mr. Kellerman, as trish was alluding to, you are trying to strike the balance for privacy, the right for americans to be safe, but also the right for americans to have their privacy not invaded. Talk to us about where that right to privacy ends. We know in terms of free speech, that right ends because you cant safire in a crowded movie theater. Where does the right to privacy end . The n. S. A. Is looking for the beinterests of the u. S. Citizens. You cant have privacy in a World Without Cyber Security. St americans are being actively pursued by criminals that eign nations actively trying to steal intellectual property and rights as consumers. Go back to the quote from ben franklin that we heard surface during the story. He says those who surrender actively trying to steal intellectual property and rights as consumers. Go back to the quote from ben franklin that we heard surface during the story. He says those who surrender freedom for security will not have nor do they deserve freedom. I guess times dont really change. You go back to the 1700s there. This is really what is at stake. Its a slippery slope. People worry about at what point are we surrendering too much, david . One of the big issues is the way this was presented initially, a lot of americans thought their calls were being actual to or their phone records were looked at. If youre calling a yemeni bombmaker, theyll look at your records. It outstrips reality but you see what happened with target, Neiman Marcus, the data that is provided by the private sector thats the concern right there. All of your data is out actual phone it. I log into my bank account and you think there. Its remarkable when you think about this money is there because i see it there, right, who is to say someone couldnt hack into that. Fingerprints were leaving every day, all of us, dozens and dozens of us. What about those fingerprints . Were leaving them everywhere, were on facebook, twitter, everywhere. An important concept is the implied consent of giving your data over to a service provider. In our construction under the Supreme Court law, there is a doctrine of third party consent, meaning if you give a third party, very rise done or facebook your data, its their to lose and subject to a lower constitutional to say protection then, for instance, your speech which you are not giving to them. This Program Turns on that kite subtle and important question. But, mr. Kellerman, are we at a point in our nations history where a citizens guaranteed rights are not absolute . I wouldnt suggest that. What i would suggest, though, is american citizens should be much more concerned with the approach to their privacy protections croned to corporations, they are underinvesting in Cyber Security and criminals are migrating to these systems and stealing thousands of personal records and ideas. But, sir, should it be voluntary . Security Cyber Infrastructure be voluntary because its in the National Security interests, or should it be mandated by government . You cannot maintain privacy in todays World Without pro efficient standards of security. You have to be con any distant that the mission is to protect americans. Americans face a worse threat from cyber criminals and foreign nations lets get to the issue that people dont like the idea that the got is in their business or the threat of it. What do you recommend for the president here . How should he be handling this as more and more americans say i dont like this . Well, i thought the speech he gave last week was very important. He did offer some reforms. To explain, again, no one is listening in on your phone calls. No one is collecting the numbers you called unless there is reason to believe that you are talking to people or doing business with people that may want to do us harm. I do think some of the reported activities that were going on with foreign leaders, reforms there are necessary and he offered those. A lot to understand is explain and reform, but i do think that people do have to understand that the threat has changed. If you can pick up a threat and prevent a terrorist attack, i think most americans want to do that. Its an ongoing debate. Thank you so much. Us. D is sticking with richard, always a pleasure. And Richard Sherman, wow, he is either public enemy number one or he is just a young man who is overly enthused about winning. Managing a viral message when we return. Richard, welcome back to street smart. Im Mark Crumpton with trish regan and our guest host for the hour, former white house supervisor. Youre a foot fan, even if youre not, the infamous video, theyre calling it the rant. The rant, the variety rant. Richard sherman of the seahawks after they beat the 49ers last weekend to advance to super bowl sunday, sherman went on a rant about his rivalry with 49ers wide receiver michael crabtree, take a listen. Im the best one in the game. Thats the result youre going to get. Dont you ever talk about me. Who is talking about you . So is this being received and how will it impact potential sponsorships . We are joined by the market manager, jamesy fritz, thanks for joining us. Thanks for having me. Is he public enemy number one or do people understand that he is a young kid that got jazzed up after a win . You have done that, right, mark . Every day. I think its turning. I think the perception immediately following the game obviously, there was a lot of outcry from the public, but, i have said this a couple different times. What people have to understand is the switch that it takes a lot of these players to play at such a high level, a championship level, to put your team in the super bowl is not something that easily slips on and off. There is a reason why the league usually has a 15 to 30minute cooloff period before there is any media interviews. When you look at the timeline cool off. The other question is if crabtree doesnt shove him in the face, do we get that reaction . I think that set him off even more and led to obviously the emotions taking over once lots liked it. You look at tshirt sales, theyre actually up. He is doing better on that at least. Is there any way that this could actually have a positive effect on his brand . I dont think if the win, he wont be the one delivering the im going to disney world. He has an amazing story from compton to stanford. Clearly, there is 100 awareness who Richard Sherman is. If he has a good game and the seahawks win, he will have more opportunity than before. Jamie, how do you market an athlete who is in the center of a storm like this . We tell that story and we have been telling that story all season long, you look at richards body of work its a Great Success story, is it not . Its amazing. What he has accomplished from a diversity standpoint and you look at the greatest athletes who played this game, look at ray lewis. He is a beast on the field but off the field an incredible guy. There is a switch for these players to play. Brands are loving this right now. The feedback im getting i only had a couple brands that are questionable. They have come around and realizing now, he is trending in poland, i mean, come on. People are responding positively. What about in a case of like a tiger woods where people are not responding so positively . We saw with him, he lost the nike deal right after his whole scandal. Absolutely. Dennis rodman always seemed to have a challenge getting sponsorship. Now he is in rehab. Scandal and athletes, that doesnt necessarily work well together in terms of ad dollars. Everyone of those contracts has language that allows them to get out of an agreement. The most compensation i have amongst brand manager, jamie, im putting millions of dollars behind this athlete or this brand. I dont know if theyre going to go cheat on their wife, rape a girl or kill some dogs. Thats real talk. Jamie, how much does race play into this . Sherman brought that up, too. He took great offense of people labeling him a thug. He is a young guy. He got excited. He was up in crabtrees face. He said some things that were immature. He regretted it later on. All he did was taunt. In the nhl we have guys that drop the gloves and beat them in a bloody pulp. Is race a factor . It certainly has come into play. This is a violent sport. These guys are he said per barbarians. People are rooting for these guys to tear each others head off every single weekend. Theyre the same guys in the bar drinking the bar, and if they have a problem with this, this generation would never be able to handle muhammed ali. That is an excellent comparison. Ali backed it up. Right. Ali so did richard. Richard hasnt won a ring yet. He is one step away from the mountaintop, but he hasnt won a ring yet. If the seahawks lose, the media is going to descend upon him like vultures . No, it depends on the game he has. If he gets burned deep a couple times, it could be a different story. He plays his game, ok, and they still lose, no. I think that brands are still very excited about what he has accomplished to this date. Jamie fritz, director at fritz martin management, Marketing Manager of Richard Sherman of the seahawks, thank you for coming. Thank you for having me. There is breaking news, the company is undervalued. We got julie on the breaking newsdesk with more details. Julie. Icon on the case on apple that he has made that its undervalued, it should return cash to shareholders. What is new here is that he is increasing his stake from yesterday. Trish, when you spoke to him yesterday, he brought a stick to apple at around 3 billion. Today he added another 500 million bringing his investment to 3. 6 billion. The move yesterday brought him into the top 20 holders of apple. Its such a big company and so many big investors and so many investors period that it takes a lot to get you into that top 20 or top 10. Now the 3. 6 billion investments that brought him a little bit up higher. He also says he is in a condition to keep buying apple stock at todays price. Remember, one of the things, of course he said to you yesterday is, you know, its a good value here, why should apple let me buy the stock instead of it buying back its own stock . He also says that he speaks positively about apple and the company itself, but really, trish, as you know, this is his sticking point, the cash should go back to shareholders. He wants a buyback. One of the other points he made is tim cook is not a finance guy. He did come out yesterday and tell me that he liked tim cook. He liked the management in apple, not so much at ebay, but he liked it at apple. Still to come, well tell you about the unconventional way jamaica was able to send its bobsled team to the olympics. It involved digital currencyy. New kid on the digital money block next. Are Digital Currencies for real and will they last . We heard that jamaica was able to send its bobsled team to the olympics and crowd sourcing and what is it, matt. Doggy coin. You can pronounce it anyway you want. Its kind of a joke. Its definitely for real. And its really worth real money. People are mining it and people are using it to do a lot of good things like send the Jamaican Bobsled Team to the olympics. The currency, the joke and bobsled . Its a joke and real. Its a joke that does good things. I mean, its fun. Its much fun. Here is my question, ok. As we look at the bit coin universe right now, there are currencies that are trying to challenge the bit coin norm and my question is, will things like this, maybe not doge coin but other kinds of currencies really give bit coin a run for its money . Not really. So there are a lot of alt coins or alternative currencies and some of them do things that make you look at bit coin in a different way or maybe some of the things do things that you would like bit coin to do. Usually all of the good from the alt coins is taken and built into new bit coin. You wonder where the feds are in all of this, i got to ask you, david, you worry about things like terror financing, but people buying drugs on sites like silk road which got shut down. And jamaican bobsledding. Jamaican bobsledding. You dont want that to happen. Are they able to crack down on this . They have to watch it very coifl. Doge coin, amateurs are involved in it out there. Bit coin, you have to invest millions of dollars. Thats true. Its become a real operation to mine bit coin. I think you have to look at all of these things as what they really are which is a form of currency freedom. Can you buy could you buy drugs on silk road, yes . Should the government be regulating what you can buy and what you cant buy . Some people think no. There is the liberty tarean i know. I know it would be surfacing one of these days. Those people are supporters of bit coin and supporters of Something Like silk road. Thank you, matt. Anytime. 26 past the hour. Alex steele is on the markets. Hey, alex. Were looking at a pretty rough day for the markets overa

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