Web traffic spike, suggesting they are still in demand. And first, to the lead. The snap chat ceo stopped short of a formal apology. 4. 6 million user names and phone numbers were posted online. They say in a blog post that they will launch an update to the app. The new version will let users opt out of the find friends feature. This is the future that was exploited to get all of these are details. The ceo also told today that they did ignore warnings about potential ballmer ability. We thought we had done enough. In a business like this, that is moving so quickly, you spend your time looking backwards and you will kill yourself. So, are they doing enough to quiet the storm . We have a special roundtable today. Mark milian is here. Also, jeffrey hayzlett. Jeff, i want to start with you. Would you call this an apology . It is not. They have ignored the three as of pr. Acknowledged, address, and a sure. It was embarrassing. It was weak. They have an obligation with social media. Transparency and trust is paramount. They are blowing. Mark, what do you think . This is a different kind of company. The founders 23 years old. He obviously had sympathizers. Why not be more contrite . These apologies are cookiecutter. I do not know why he could not just go through the burger moral of saying im sorry. It just felt insincere. He is saying that in a business like this, we cannot look back. You should learn from your mistakes. I went back and looked at Mark Zuckerbergs apologies. Early on, i thought we would see the same thing. Hisally, in 2006, i found first apology. It was quite contrite. He said we messed this one up. It was newsfeed. He said we did not fill in the proper privacy controls. This is a big mistake and i am sorry. Apologizing is not enough. He quickly wanted to do something about it. They are doing better for privacy controls. What do you make of that . I have that same list. There are a whole bunch that they could pull. They could use those as their examples. He said, done, we hear you. In this case, they say that no big deal. It is a big deal. Names thatnap chat we can compare with phone numbers. There is a database of phone numbers. I could identify who those people are. Very poor in judgment. They are taking it too lightly. Most of us were waking waiting around to say i told you so. We know that this information is never fully safe. He is a that it is, smart 23yearold, but start putting systems in place. Youre the reason it week in the first place. They did just recently hire a ceo from facebook and instagram. Sort of like the grown up in the room. There are also people on the board one of the advisors is scott cook. Had reid at the time, hoffman. Are these people not giving him good advice . Is he not taking it . Emily white, for example, her expertise is creating revenue. Learn a lot. E to Mark Zuckerberg became very quickly a pro in apologizing. He had to do it a lot. So yes, snap chat is going to have to. In the scope of things, this is not the worst security breach. It is phone numbers and usernames. There is no credit cards. It is phone numbers. Peoples phone numbers are online. You cannot easily change that. You can change a password, but not a phone number. I would not downplay it. It could be worse. Even more important, you could put the names of the people if you see these names, some of these people would not want that information out. He needs to be taken to the woodshed. The rest of them need to take them out to the woodshed and give him a spanking. Take the stuff serious. Trust is foremost for holding onto users. People to information has been released. It is not the worstcase by any means. It is a step towards that. He needs to know that you need to reassure these people. Do not be week about it. We have seen facebook dealing with privacy today. Over and over, privacy has been one of their issues. For snap chat, it may be the same thing. This is an issue of security. It will not go away. Do you think there could be longterm consequences . Without question. It is one thing that people will say the, should i really be doing this . They try to get a lot of people to use it. You might say that it is not that safe, so i will be careful. Assume, whatways will happen if my mother sees this . If you go with that in mind, you will probably not do half of the stuff. It does have an impact. I think that they will have to get better about showing people how you can trust us. That is the key. This is a good point. The whole point of snap chat is that the data disappears. You are sending people photos that you do not want to exist. If they are having problems of security, why snap chat at all . I almost think that being taking security seriously and actually going the extra mile to make sure it is secure, is maybe more important for snap chat than it is for facebook print. Everyone has 5000 facebook friends. They are conscious of how they shared data there. Snap chat is designed to implicitly trust them. You give them their most personal pictures. Any sort of breach of trust chips away at this company. They need to keep a hold on that. One other thing that was mentioned is that snap chat does not have a bug bouncing program. They actually incentivize hackers to exploit flaws in the software. They reward those people with something that they stop short are, thereey, there are longerterm things that they could do. Convey . I would go over bird here. Overboard here. These are the steps that were going to take to ensure your privacy and trust. You can use us in the future and know that youre safe. I would go find the biggest security expert that i can. I would name them to a commission at and a committee. We will put forth new guidelines. I would do those kinds of things or go Higher Companies to do that and tell the world that this is what were doing and make sure that we are stopping. Give assent or guarantee. Go overboard. We will see what happens. If he indeed get the spanking, as you suggested. Jeffrey hayzlett, mark milian, thank you both for joining us. Week, the Consumer Electronics show kicks off in las vegas. There is a lot of buzz about products that are being unveiled. We will tell you what to expect from this years show and you can watch it streaming on your tablet, phone, and bloomberg. Com. This is bloomberg west. Google last integration is coming to hyundais luxury sedans. They will offer an app for google glass and other wearable devices. The app can be used for predriving operations. Alson and mercedes are planning to integrate wearable devices with their cars. It is almost that time of year again with some of the biggest names in tech descending upon the city of sin. We start next week in las vegas. With what we can expect on annual show, i am joined by jon erlichman. You are going to be in the city for this. Every year theres a lot of cool stuff. A lot of perky gadgets. I question is, are we going to see anything that will go mainstream . Will we see wearable devices that we want to wear . That is the place to do it. We are all interested. They caught our attention. You have been there and we have both spent time there. It is enormous. Literally. There are 20,000 product. You have a golf cart. It is hard to see everything. You are getting to a very important point here. Of these massive televisions that will be on display and some of the technology we are arty familiar with, some things to watch for our Digital Health reports. These highlight the fact that you will be seeing Digital Health companies theyre showing off fitness apps and wearables. The wearables category is one that we are still trying to figure out. 3d printing, what will happen there . Television focus. Connected cars are a big area as well. You talk about google glass. There are a lot of automakers. They all want to say we are the cool kid. Whether that is a game changer is always tough to say. We will try to find out for it i notice tvs. This could be their moment. It is always a whos who of the tech scene. I think bill clinton was there last year. Why do people like that what did they get out of cest . It may be becoming more irrelevant. It does not have to be at ces. If you look at the companies that are present at ces, samsung, sony it is an important platform for them. Outside of the obvious conversations around things like ofrt phones, in the case samsung, this is a company that has smart refrigerators. A company like qualcomm is trying to lead innovation in new categories as well. I do think that, at the end of the day, the biggest message that can be learned is from the Companies Like microsoft and intel. There traditionally tied to the pc. Theyre trying to battle Companies Like apple. They do not have a presence to say here is the way some of our software is integrated. This is why we have to shop and make decent sales. Those are some themes to watch. All right. We will see you in las vegas. Thank you so much. The hype around the Virtual Currency bitcoin may have started to reach its peak. I Financial Search form listed a position for a junior bitcoin traitor at a hedge fund. The hosting the posting read that they are seeking a junior trader for execution and general fund off rations operations. Matt miller is joining us. If you remember the 12 days of bitcoin. How could you forget . What does this mean . The first thing i thought when i thought was that they won a junior trader. He must already have a senior trader. I know that that got a lot of way. It blew up on twitter. People talked about it this morning. For people who are involved in the bitcoin world, hedge funds have been part of the discussion for a while. There is a lot of bitcoin meet ups here in new york. There is always a good showing of hedge fund employees. They are either trading for themselves or trying to find out more for the hedge fund. There are stories about hedge funds that may be fantasy, but stories that took huge positions back when bitcoin was trading for one dime or a dollar. Then you have the winkle vossen fault meant. The winkle vossen involvement involvement. Voss there is still uncertainty around bitcoin. We sell Price Fluctuations over the last couple of weeks. All the better. Huge Price Fluctuations is exactly what they are looking for. Traders love nothing more than mad volatility. That is exactly what you have seen with bitcoin. The only problem really, that i can think of, that i cannot get my head around, is a lack of liquidity in this market. Also, lack of exchanges. There are no regulated exchanges. Theyre not exchanges that allow you to get in and out quickly. Whatn execution trader, you want is someone who will come in and take a big position and make a lot of trades throughout the day. They will close the position before they go home. You want to be flat overnight. If you have read the stories about the bitcoin exchanges, sometimes it takes days to weeks to get your money off of those. People are not lucky enough to get the money off at all. It would be a difficult area. Thee noticed quickly that job posting actually had recently been scrubbed to erase all mention of bitcoin. What do you make of that . I cannot quite figure that out. They did scrub it. The only thing i can think of is possibly that is a red flag for regulators. They wanted to deal with that quickly. We all saw it. It has been on the internet. Good luck. This out there. Matt miller, our expert, thank you. We will be right back. Welcome back. The nfl playoffs kick off this weekend. Fans in one of the four cities may not get to see it. Thats because the game in cincinnati is on the verge of being a blackout on local television unless the game sells out at the stadium. I talked about this with espn Vice President and my partner jon erlichman. Take a listen to what they had to say about weak ticket sales for the playoff games. There was such a cost and also such a demand. The combination of our short demandmbers and the immediately coming up on six days notice, it is a stretch. Yes, i think you said it in the tease. Home is sonce at much of a comfortable experience that the nfl is confronting it. The former oakland raider president was talking about how the emphasis of the nfl is on increasing the experience at the games. To make it very attractive for people to spend that hundreds of dollars for tickets. That is what the push poll is. Especially on short notice. You do not know what time on saturday or sunday. That is why you are looking at a blackout rule. That was the substance subject of a legal entanglement. I was talking with amy, the former ceo of the raiders. She thinks the blackout rule is irrelevant. Theres an argument for the local communities to continue to have this rule in place. There is a risk in place. These games could be whacked out. What to the networks think about this . When you go into the end of the regular season and you do not know which teams are going to make the playoffs. That boost your ratings. As he was highlighting, youre left in the situation were not enough people had time to buy tickets. He did not know if their team would make it to the playoffs. This will always be a concern for the networks. It will be a concern for the Cable Companies as well. How often are we talking these days about the fear of people not signing up for cable or canceling their cable . Live sports is the one reason why a lot of people have to hang onto their cable package. The football is at the top of that list. Anytime you frustrate fans, that is a big deal. What do you think . Will they be blacked out or will they sell it in time . I think there will be a rush. This is where the local abc cbs, fox, and all of the affiliates who are involved, nbc as well, well get involved and try to sell up and do the right thing for the local community. Is len deluca with jon erlichman. It is time now for on the markets. Matt is in new york. We want to get you caught up on where the markets are trading this afternoon. A little bit of a turnaround in the index. We are seeing green across the board for the second trading day of the year. This morning, the s p 500 is unchanged. The dow is showing again at 20 points. The nasdaq is firmly down. A couple of stocks that we are watching, 3d systems. They are making 3d printers. They are acquiring gentle giant studios. They make threedimensional models for entertainment companies. They plan to use the company for Action Figures in conjunction with films and licensed items. We are also watching micron, they are falling. The valuation is trading too far ahead of the fundamentals. They expect a solid lead from micron. Welcome back. You can also catch is that are later time 6 00 eastern. Now for your top headlines. At least six people have been killed and dozens more hurt after clashes flared up in egypt. According to state media, the muslim other hood had a call for mass protest today against the military backed government in cities across egypt. Russian resident Vladimir Putin has made a few rounds on the ski slopes. That is weeks ahead of the winter olympics. He will also be inspecting venues in the coming days. He has found to improve security. A pair of suicide bombings killed three dozen people last month. Chicago once again lead the nation in homicides last year. 416. There are signs of progress. That is down 18 from 2012 and is the lowest since 1965. Meantime, the murder rate in new york in the late dropped last year. When this storm approaches like the one in the northeast, there is only one thing on our minds. Will there be a snow day . A group of seniors from illinois are using algorithms to predict snow days. Our meteorologist Bonnie Schneider is in new york with all of the details. I am assuming this involves some sort of historical data. How are they doing this . They are putting this into an android application. They look at the amount of time that a snowstorm a last and calmly inches of snow are expected. What the temperature is. They created an album that will determine if youre going to get a snow day. It depends on where youre going to live. If you grow up in a silly community, you know whether or not you are also getting a snow day, no matter how much snow you managed to have to go to school. There is fluctuation too. You have to give the credit to these kids. They have turned it into an app to curb predict the weather. No historical data. Perhaps they could improve their accuracy. We talked about the nfl games earlier. There is a potential blackout. There is one game that is still not sold out. There will be cold temperatures this weekend. How will that affect the game . The storm system is pulling away. Behind it, we have bitter cold temperatures. Really cold wind chills. He can show you some of the games that we have. There is an indoor game and the outdoor temperature does not matter as much. For the ones that are outdoors, there will be cold temperatures below freezing. Some in the single digits. Whomber, for those of you love to tailgate, if you will be outside, youre looking at cold wind chills. Especially in the upper midwest and here in the northeast. A cold one today as we recover from the blustery snowstorm. This is what it looks like on the road. That is probably earlier today. We are really seeing some tough conditions to travel in. So many flights were canceled. By the time we get to tomorrow, things will be back to normal. Be careful shoveling out there. It is not only heavy snow, but it is really cold out there. Be careful out there. On a schneider, thank you so much for that update. Turning now to the cell phone business. If you have sticker shock over your wireless bills, wifi may be your best friend. Helping to create what may be the cheapest cell phone network. We wrote about this in the weekly edition of bloomberg businessweek. Brandon, tell me how exactly this works. You can make calls only on wifi . I talked to a Company Called for public wireless. You have to buy up front for a special version of a new android. You can make a call over the wifi network. You youre out of range, borrowed time from sprint. This all works out to a network cost to you of between five dollars and 40. That does not seem that extraordinary. You could do anything with skype now. What is extraordinary that they have made the phone to get a normal dialtone. This is not difficult. It is very difficult to pull off in terms of a business trip. All of the handsets are sold through the carriers. The carriers have a vested interest in the strength of their nonwifi networks. What about the quality . Sometimes you try to do a skype call or face time on the road. It does not always work. The qualities actually better. I talked to the engineers who said they had trouble making sure that the handoff was clean. Theory is a much higher capacity network. The voice call sounded better and worse went to one onto