From ipos to smart watches, 2013 has been an exciting year from tech. We are breaking down the top tech stories and the biggest controversies this year. Government surveillance taking a new turn today recommending significant changes. The white house released the findings just hours ago. They said surveillance should continue but with significant restrictions. There are 46 recommendations including making it harder for the feds to get access by having third parties store the call data. The government would have to get a court order to access the records and the panels also calling for new criteria for eavesdropping on foreign leaders. This comes one day after talking technology with tim cook, sheryl sandberg, and are a semi. Phil mattingly joins us now. What can you say about the reaction to these recommendations . They would have a major impact on how intelligence policy is put together. You listed are the big ones. The key is the storage issue. In this metadata collection of phone records of u. S. Citizens, what this report is stating is that the government should not be the one holding that collection. It should give third party, telecom or someone else and they would need a court order to go search through that metadata. The other issue from a political perspective is the surveillance of World Leaders and this is a decision that can be made by the Intelligence Community. This report says it should be a white house decision. Going above the Intelligence Community straight to the oval office if they ever want surveillance on a world leader. Obviously with going on with Angela Merkel is a very big the lyrical issue. About a 300 page report from the fivemember review group and any way you cut it, major significant changes to how the Obama Administration implements its intelligence policy. The Obama Administration does not have to do any of this, but what kind of pressure does this put on the white house . This is the review panels recommendations and none of them are binding. Jay carney said today the president is likely to take his report on his twoweek vacation to hawaii for the holidays and he will review them in january to have a wideranging speech to implement and talk about the policy changes they will put in place. What we know right now as this has been a rough week on this issue. You have the federal court judge stating the bowl Collection Program was likely unconstitutional. You had a rough meeting with Technology Executives yesterday and they want a lot of changes to the program. A lot of pressure to make changes and this only adds to it. Phil mattingly in washington, thanks so much for the up a. What could these Panel Recommendations mean for the relationship between Government Technology and security . We turn to a special bloomberg roundtable. Bob joins us now from washington, d. C. They help businesses collect and analyze Cyber Intelligence and was founded by a group of intelligence and military veterans. The senior director for Public Policy and Government Affairs at the computer and Communications Industry association, an Advocacy Group protecting groups like yahoo, google, microsoft. Thanks for joining us today. I want to start with you because your resume is quite extensive. You help stop these high targets. Do these recommendations made by the panel put us at risk in any way . Thanks for having me. It slows down the process of our ability to gather intelligence and analyze, if it does anything. For example, i like to use the 9 11 example. Right before the 9 11 attacks it became evident that one of the hijackers was communicating with elements in yemen. Following that, we were not able to actually collect that to analyze because it was emanating from within the united states. After that, the 9 11 report, a recommendation was made to change some of our collection ability in order to catch intelligence items of that value. If we swing the pendulum the other way too much into the privacy realm, i think it might slow down our ability to find things like that. If the recommendations are implemented as is written, they would be dangerous . Not all of them would necessarily be dangerous. As i was saying with my pendulum analogy, following 9 11, we swung the pendulum from privacy to security. There is always that balance between privacy and security and we are trying in this recommendation to point to the needle to the preferred area where it would be the sweet spot. What this does is it goes more towards the privacy area and may sacrifice some speed in our ability to process information. Daniel, youre part of a lobbying group advocating. The privacy groups want more privacy and protections. How is it being perceived in the Technology Community so far today . Thanks for having me on. Its a great step forward and its a 300 page document. My colleagues and a different Tech Companies are going through this as we speak but its important to start this in balancing security and privacy. As all your viewers know, International Markets represent some of my Member Companies biggest targets right now. Its important for Internet Users across the globe to get this right. It could be a disaster blow to our Economic Security and thats another thing we have to consider. Its not Just National security but the health of the u. S. Economy going forward. You represent facebook. Mark zuckerberg has said the nsa blew it. What do you think he thinks about these recommendations . Are they Strong Enough in the direction he thinks they should go in . I will not speak for mr. Zuckerberg, but there are important things on the table. It makes it harder to collect and analyze metadata and it requires a Court Decision from the other day that said its a violation of the fourth amendment. Another thing i like about this, and needs to go further but its good to start this conversation, it Discusses International users. Facebook and google have half of their revenue coming from overseas. If their users do not feel like google and facebook can be trusted, then it will be a huge blow to their business and bottom line. The other day, cisco released in its quarterly statement that they have had overseas sales affected him as a new study that shows the damage to the u. S. Cloud computing and hosting economy could be over 30 billion over the next five years. Its important to get this right. In terms of getting it right, my question for bob, are we going to swing the pendulum towards privacy until something bad happens again and it will go back in the other direction . It is a possibility. I believe nsa and the Intelligence Community has a lot of oversight. There is an executive and legislative oversight over the Intelligence Community and certainly the nsa. You have to realize the people behind the scenes are constantly trying to move this process and balance as time goes on. When a large global event occurs like this, the snowed in documents, this is a catalyst in order to swing the pendulum back towards privacy just as 9 11 was a catalyst to swing the pendulum back toward security. Thats how the process works but its happening in smaller iterations all the time but we just dont hear about it in the public every day. You wonder how we find a balance. You worked inside the nsa at the cyber unit four years. What you think the nsa is doing wrong . I was not really on a Decisionmaking Authority to determine where we were able to stop our privacy limits but i really think its one of the best methods we have for handling this very difficult problem. Theres really no better way than weve come up with. Its a challenge to try to protect the united states, try to protect u. S. Persons because the problems are not going away. There are threats out there and it happens every day. In my opinion, this was a very balanced in a calculated measure with a lot of oversight. How cooperative do you think Technology Companies like facebook and google should be . How cooperative are they willing to be with the government . They are willing to become operative but oversight and checks are in place and they need some level of transparency not per se to talk about who is being targeted but to talk about abstract numbers and what kind of surveillance also, we would like the government to be more transparent about different legal authorities under which they are operating. Companies are very supportive but at the same time they care about their International Users and the reputation overseas. This is something they take very seriously. Its false to say theres a tradeoff between privacy and security. We can have robust oversight and checks at the same time and still respect international and domestic Internet Users. Bob and daniel from the computer and communication industry association, thank you both. Lots of debate about this and im sure there will be more going forward. We will be back with more on bloomberg west after a quick break. This is bloomberg west. Im emily chang. William morris endeavor will be buying img which represents sports and models. Cory johnson is here. This would significantly alter the landscape of the Talent Agency world. Tell us about the impact we are expecting. In this time of changing media, its interesting that Los AngelesbasedWilliam Morris endeavor and new yorkbased img will be combining. Big agents in both worlds, 2. 4 billion for the whole deal. Img has so many of my favorite models. Cristina alesci has been looking into this. There are too many to count. This is actually really interesting. It affects a lot of different industries. You say it makes a lot of sense, one agency buying another. The man who runs William Morris endeavor has done this before. He combined the businesses and made them more efficient to bring on more clients and potentially having last cost is you are doing with fewer agents. This is not the same kind of business. Img has an Agency Business but the profitability will come from developing contents, which it has been doing sports content. Essentially, nationalizing local or College Sport and bring in bigmoney sponsors. The creation of the sec league and the sec channel, the university of texas, it is created new media entities. Its a huge opportunity for them. Can he keep the guys around who built the business to still build it for a new Management Team . Ari has a big personality. Youve met him. You know. Do they even want to guide the stick around or do they think they can do a better job . We are showing pictures of taylor swift and peyton manning. Roger federer, peyton manning, justin timberlake, gisele bundchen. You take gisele and i will take justin and we will both be happy. The question is not only how do you execute the actual merging of these two cultures but how do you execute with a large amount of debt . They did not have 2. 4 billion lying around on its balance sheets. They had to go to lenders and borrowed the money so now they have to be a lot more disciplined with cash flow and they have to be very mindful of overhead. They have to keep the best agents and shed the ones they dont think are the producers and is going to be a problem. Cristina alesci, thank you. Emily. Jeff bezos, tim armstrong, elon musk delivering some unforgettable lines this year. We bring you the best tech quotes from 2013 next. Welcome back. Im emily chang. I would like to die on mars, just not on impact. Thats a quote from spacex founder elon musk at this years sxsw conference. For more unforgettable lines from the year in technology, lets go back to cory johnson in new york. There are lots of limes that i want to forget. Nicholas thompson, editor for the new yorker, joins us. Hes come up with some of the most ridiculous or incredible thing said in technology and hes here to talk about them. I want to go through a few. Tell me the story behind them. Number one, jeff bezos. Are you lazy or just incompetent . This is something he said to one of his employees. It was listed in brad stones book about him. They do not adore the way he is portrayed. The story of the book is very interesting because its a book about him, amazon, a very important company. His wife goes on amazon to review the book and i thought it was an interesting tech story. It is a list of about eight hostile things. And people dont love the books but i challenge people to find a single thing thats wrong. The quote gets at something about the changing opinion on amazon. Maybe its also a little frightening . Lazy or incompetent. Im probably both on some days. Lets stay in seattle. This is from a seattle restaurant. If you wear your google glass inside and film or photograph people without their permission, you will be asked to stop or leave. If we ask you to leave, for gods sake, dont start yelling about your rights. Some people love it. The issue with google glass, and it came up in the restaurant, you can record everything around here. Other people at the restaurant did not want to be recorded by someone wearing google glass. Its one of those existential tech questions at the moment. There is a culture clash. Get out of here. And they say you cannot wear them. When i see people Walking Around with google gloss im like what are you doing . What are you recording . There are times when i dont want to be surrounded with cameras. They love it because it allows them to have a computer right there on their face. Its very efficient and simple. Google thinks it will be adapted and we will have cultural norms around them. I think that fairly well captures how much of a change google glass will be as a new thing literally in your face. This one was a tweet i believe. Misogyny is hatred of women. Its not misogyny to tell a sexist joke, failed to take a woman seriously, or enjoy boobies. Can i say that on tv . I apparently still work here. This comes from the ceo of business insider, pax. I was trying to find a quote that get that this debate over women in technology. They believe there are not a lot of coders because the industry is just so darn sexist. He was cto before his twitter account was discovered and then he was no longer the cto but it was the most awful representation of public misogyny in the tech industry. I remember this door he from tim armstrong, ceo of aol. Abel, youre fired. Weve heard the recording of this. There were all of these high hopes. So this focusing on local news, the big meeting bringing in 1000 people and some insert stick a picture in the meeting and he fires him on the spot. As i said at the time, when youre ceo, dont put a video camera or phone in his face. Thank you, cory. Holograms have hit the live concert scene but do these high tech illusions sell concert tickets . Thats coming up on bloomberg west. You are watching bloomberg west. Im emily chang. Another quarter of sluggish sales growth for oracle. Revenue up but new Software Licenses and the scripture and revenues dipping slightly. The revenue from hardware systems and changed. Apple will start taking orders for the new mac pro tomorrow. Tim cook tweeting they started making the whole computer in the usa in austin, texas, calling it the most powerful mac ever. It starts at 3000 and 1 8 the size of the current mac pro. One of the Biggest Airlines says they will not allow inflight calls. Internal Research Says it would be a disruption. Last week, the fcc voted to seek Public Comment on ending the ban. 2013 has been an exciting year for technology to say the least. Stories about the problems with healthcare. Gov, Virtual Currency bitcoin dominating the cycle below are the top five stories . Joining us with his top five, maynard webb from yahoo and he is currently on the board of salesforce as well. He founded a seed stage firm. Great to have you here on bloomberg west. Number one, not surprisingly, the nsa. Security as a whole is a big deal. Still today months after the edwards noted leak. Absolutely. Security will be with us for a long time. Some people want more freedom and some governments want more access to information and it will be something we battle for quite a while. Some have been more vocal than others. Mark zuckerberg saying they blew it when it came to surveillance practices being invasive. What do you think . I would love to tell you what we think but you know the board policy. I would say that yahoo has been front and center on supporting, with facebook, more scrutiny on this topic. One of the things that you point out when it comes to security is the rise of disappearing information in Companies Like snap chat. I spoke to yuri milner about this and he thinks its a whole trend where not everything needs to be permanent. Not all information needs to be preserved forever. People will get more and more terrified about what they have, who has what, where it goes. You will see more and more trends. Its about making sure you have different ways to experience money that is not controlled by the government or nation states. You think Companies Like snapchat are here to stay or is it more of a fad . Kudos for the growth snap chat has had. Its too early to tell whether they will be around forever but i think the issue of privacy is going to be something people are very concerned with for a long time. What are the opp