Quarter of all Online Purchases made on Christmas Day coming from iphones or ipads. And duck dynasty patriarch Phil Robertson will be back on television as a e has decided to resume shooting the hit reality series with the entire cast. We begin with breaking news apple is putting investor carl icon carl icahns proposal up to vote and urges shareholders to vote against it. He wants apple to commit to buying back at least 50 billion worth of stock. In a proxy filing, apple says the Company Believes the Management Team and board are in the best position to determine what is the best longterm interest of the companys business. Apple says it is reviewing its buyback and dividend plan and will announce any changes by the spring. For more on this breaking news, we are joined on the phone by an analyst at wedge partners who covers apple very closely. He joins us from salt lake city, utah. What can you tell us about this . Apple has been pretty quiet up until this point on this issue. Is that not true . Yes, they have been quiet. Icahn has been vocal on this, making clear via twitter and television what he would like to see apple do, but this is the first time we have heard apple make commentary on how they would like to see the board vote on the issue. This information is coming out, as it usually does, ahead of an annual meeting. Apple has to tell us when that meeting takes place early next year, what is going to be on the agenda when that meeting takes place early next year what is going to be on the agenda. Apple is going to put it in front of shareholders. Technically, shareholders could vote in favor of Something Like this, but it is apple that is saying, we would suggest that you do not vote in favor of this. Is that basically the way to think of this . That is correct. This comes out in an sec proxy statement with apple basically saying that they recommend the board not vote to increase the size of the buyback as icahn would like to see. Apple already has one of the largest buybacks in history in place. They already have quarterly dividends. There is a 100 billion row gram in place. The Company Feeling is that that is sufficient right now. There is a 100 billion program in place. They do not see a need for an increase, but they are spending cash and other meaningful ways, including buying a lot of companies. We have seen a number of Technology Acquisitions this year from apple, many of which have been under their radar, that have been enhancing their products quite fast, and other things that we think we will see apple do down the line. We should highlight that in its comments, apple says there are a lot of different ways it uses this money to your point, building the business in addition to the fact that they already have this significant return of capital plan in place. You wonder how this will set up among various shareholders. We recently highlighted the view of one of the most influential Pension Funds in the country and a major shareholder in apple, which basically said it did not side with carl icahn. As you well know, we saw an interesting showdown at a previous apple Shareholder Meeting when another activist investor David Einhorn was pushing for them to think a little bit differently about how they return their money. Can you comment on that . These guys have been vocal about what they would like to see apple do. The good news is that five years ago, steve jobs was doing nothing of the sort. There was no buyback. There was no there were no meaningful dividends. We have seen Charitable Giving for the first time Charitable Giving for the first time from the company. Tim cook is moving in the direction of what shareholders would like to see, but they are not going to be bullied by some of these activist investors. Icahn is amazing. He is a legend, but if you wanted Something Like this done, he should have done it quietly. I think he would have had a better chance of success if he really wanted apple to increase their buyback. Apple is not going to relent. They certainly do not look look do not want to look like they are going to relent. Another big story we are watching National Security agency scoring a key win in court after a series of setbacks over surveillance program. Today, a federal judge in new york ruled that the nsa possible collection of telephone data was not only legal but could also prevent future terrorist attacks. The judge writes that the blunt tool only works because it collects everything. The aclu is appealing the ruling. This comes 11 days after another federal judge said the collection probably violates the constitution. Our chief washington correspondent has been following this one closely. Peter, what can you tell us in terms of how this is being received in washington right now . It is not a total surprise. Different judge, different outcome here, but we have had several judges weigh in on these surveillance issues, and they had taken different views. The consensus in washington means this will the consensus in washington is that this will ultimately be headed towards the supreme court. In this case, we have a clinton appointee who is again backing the governments case. In this case, also taking away, as you suggested, the notion that had this been in place previously, perhaps the 9 11 attacks could have been foiled. It was simply the government responding in kind to what happened and installing this program. The judge did not find it unconstitutional. In the end, this is a win for the justice department. A spokesman saying they are pleased with the decision. Peter king, the congressman from new york, saying it is a victory and adding that it preserves a vital weapon for the United States in our war against international terrorism. Bottom line, a big win here for the government and the nsa, but just one in a much larger legal fight to come. For those who have not followed it as closely as the washington insiders, what can you tell us about the obama administration, what it has been telling us about how it has been reviewing everything right now . You have three different tracks the legal track playing out as we see in this courtroom in new york and ultimately likely headed to the supreme court. Then, the ad the administration itself. President obama said he would conduct his own review of these surveillance programs. He had a panel of experts give him advice last week and said in his press conference he will come out with his own proposed changes in january. Watch for that perhaps is the next big step. Congress is also considering changes. Lawmakers, including many from the president s party, are prepared to make much more substantial changes to these programs. The question is does that put the president in a unique sort of box in which he might be met and he might have to threaten to veto changes . Very quickly, for the companies that are caught in the middle of this, what happens now . They are still caught in this legal limbo situation where they have to respond to government requests for information. The question there is what about the proposal from the president s advisers about having the Companies Keep the information themselves and have the government asked them for information on a casebycase basis . We have not heard much from the companies, but verizon, at t they are in legal limbo, at the mercy of the government to some extent and at the mercy of the courts as well. Thanks, as always. Duck dynasty patriarch Phil Robertson was put on indefinite leave from the hit show after making antigay comments welcome back to bloomberg west. Im jon erlichman. Targets holiday hacking nightmare is not over yet. The retailer says it could did in numbers encrypted pin numbers were also stolen, but target says it is confident those are safe and secure because the information needed to decrypt them was not saved on targets system. With us to discuss it is the former head of security at Mozilla Firefox and current chase head of security. Michael, lets start with you. I think the average person sees this new headline and says, i dont get it. What exactly is target telling us . Unfortunately, we are seeing a huge rise in cyber crime attacks on retailers. Target has been breached. They have credit card data that has been stolen. They have debit card data that was stolen. The latest information is that encrypted pins were stolen. In theory, the encryption should work if everything is done correctly, but theres a lot of devil in the details. These breaches happen for a reason there was a weakness. That same type of thinking or weaknesses could be present in the way they did their encryption as well. Pins compromised but encrypted what do you think of that . I would totally agree. Just to say that it is encrypted is not enough. Is the algorithm unique for this system . We have had other cases where passwords, emails have been encrypted, and it used a common encryption, and it would be very easy for someone to do an attack against that. Just to say it is encrypted again, like michael said, the devil is in the details. Is it a unique encryption . A lot of times, these cases pop up, and you can only point to that one for the news of the day, and it is hard to connect all the dots, but there have been similar attacks or data breaches like this one. Barnes noble, i believe, had something similar. Just last year, barnes noble had an attack where hard data was stolen from the store. Attackers went into 63 Different Stores and modified the pin device itself to physically steal the information that was entered. What ultimately happened . For people wondering what will happen with this target story, what happened with barnes noble . In these situations, there is a risk to customers. Banks can take care of credit card fraud. The enduser, the customer, is not at times of risk, but for debit card fraud, we have a different story because that money is being withdrawn from their account, and that can be tough for them to file complaints and get the money back. Banks are taking proactive action. Just a few days after target released this information, chase lowered the amount that could be used for cash withdrawal and debits. Thats a pretty bold statement at the height of christmas season. David, let me get you back in this conversation. How is target in a position to make a comment like this, feel confident in saying this user data is safe and secure when, to the rest of us observing this, it really does not seem that clear that that is the case . Again, a lot of us looking on the outside do not have all the information. Maybe the actual intrusion was found, and it may have been on the servers, and they have not found it at the pos system itself. Theres a lot of information we do not see. One thing i would bring up we talk about barnes noble, we are talking about target 98 of all attacks are not even discovered. We have to understand that it is not just these that got caught. This is the world we are living in until we move to smart chip technology. We are trying to put a bandaid on a hemorrhaging wound. Coming back to michael, failing this push to smart card technology, youve got the retailers, youve got amazon, which is holding huge amounts of data on behalf of people right now, youve got the rise of new payment systems, and you put all these together, and there are a lot of unknowns. Its a very complex system, and at the end of the day, there is valuable data in these systems user data, credit card data, money. We have cyber criminal organizations that are intelligent. They are advanced. They are targeting all these things. When you think about what they are doing, they are distributing these attacks against all these systems to cause damage ultimately to pull out money because it is a full underground business. Right now, you can purchase the compromised target credentials for around 30 on the black market. Before we go, if you were somebody shopping at target during the holidays, what do you do . Watch your credit cards. Make sure that you do not see any strange purchases. Change your pin numbers just to be safe. I do not think they can really trace it all the way back to just after thanksgiving. I think we will see if it comes up if more data has been taken. I would change all of your pin numbers and just understand this is the way we are going to be living for the next couple of years. All right, dave from perimeter security, joining us along with michael. Thanks to both of you. We will be right back. Duck dynasty patriarch Phil Robertson will not be missing any episodes of the hit series. Just a week after suspending robertson, a e has reversed its decision. You may recall, duck dynasty has pulled in as many as 12 Million Viewers, making it the mostwatched cable reality series. This is quite a turn of events over the last couple of days. What is our takeaway . An indefinite suspension took about a week to find a solution. Both sides needed a solution here. This is one of the mostwatched shows on cable television. It is the biggest revenue generator for a e Television Networks, which is coowned by disney and hearst. This show, as you mention, is averaging this season almost 15 Million Viewers per episode. Both sides wanted to find a solution. The family came out last week and apologized for the course language that Phil Robertson used apologized for the coarse language that Phil Robertson used but said they could not envision Going Forward without him. A e said they could have some Public Service announcements that will run nationally on all of a e networks that will encourage tolerance and understanding. We are not sure yet if that will feature any of the Robertson Family members. It was not in the press release, and a e has declined so far to elaborate on the statement it put out today. But what we do know is that Phil Robertson will return to the show, and production will resume this spring. How important is this show for a e broadcast network . This is the Big Bang Theory for a e. It dominates their prime time. Not only does the show bring in about 80 million in advertising, it gives paytv systems the confidence to pay a e more and more money in subscriber fees to carry the channel. On top of that, the real money comes in merchandise sales. Forbes does quote magazine estimates that this year, duck dynasty merchandise will total or hundred Million Dollars in sales Forbes Magazine estimates. It has become an incredibly important show in all quadrants. We only have about 10 seconds left. But what is the social media lesson from this for any content creator these days . If you are a personality like Phil Robertson, you have a strong presence on social media, you will have a lot stronger say. This is not a world where the Television Network can dictate all the terms. They are going to have to work with the talent, especially talent with a Strong Social following. Got to leave it there. Thank you for joining us from los angeles with the latest on duck dynasty. On Christmas Day, apples ios beat out android when it came to mobile shopping with nearly a quarter of all Online Purchases made on an iphone or ipad. More details next on bloomberg west. You are watching bloomberg west where we focus on technology and the future of business. Twitter shares took a big hit today, ending a big runup of late, after mcquarrie capital cut the stock, saying it may be overvalued. Twitter shares had nearly tripled from the ipo price, despite the company having never turned a profit. Apple is once again asking a enteral judge federal judge to ban u. S. Sales of certain samsung phones that are no longer on the market. Apple seeking a ban of more than 20 samsung phones and tablets that were found to infringe on apple patents last year. Tim cook received total compensation of just over 4. 2 Million Dollars last fiscal year, slight increase from 2012, including a base salary of 1. 4 million. According to a filing, he did not receive any more stock awards. Those awards are worth more than 560 million bucks. This Holiday Season, it looks like apple may be the winner in the mobile shopping wars according to a report from ibms benchmark. Apple ios devices were used to make 23 of purchases on Christmas Day. Ibm also found that ios customers spend about 94 per order, almost twice the amount of the average android shopper. Ibm digital analytics benchmark is part of our next guests portfolio. How do you put this together . How do you figure out what is going on . Who is spending what on what phone . We have a benchmark data set that comes from more than 800 retail sites, so we have a pretty comprehensive sample. The backdrop is a pretty outstanding Holiday Season for Online Shopping. In particular, Christmas Day, we saw online sales up about 16. 5 . Mobile has really reached a Tipping Point this year. We actually had on Christmas Day 48 of online traffic coming from mobile devices, so almost half, which includes both smart phones and tablets smartphones and tablets. We seen a pattern where folks are using their smart phones to browse and tablets to buy. We saw smartphone browsing numbers to be about 28. 5 of all online traffic. About 18 from tablets. That really flips around when it comes to purchasing. About 19 of all purchases were made through tablet devices and only 9