Plan may very well be for to be held by a thirdparty, possibly by the phone carriers themselves although they have certainly been very resistant. It could get very expensive for the carriers to hold onto this data. Another thing coming out of the speech, the government seems to be open to Tech Companies like facebook and google being more open about the Data Requests they receive and more transparency. They can reveal what they are being asked for by the government. There was some language about not spying on our allies unless there was a compelling National Security reason or we just really want to. It brings up the point that a lot remains to be seen here. If any changes are made, it could be months if ever. I want to get to a quick quote from the president address today. Take a listen. What a did not do a stop ease programs wholesale. Not only because i felt they made us more secure but also because nothing and that initial review and nothing i have learned since indicated that our Intelligence Community has sought to violate the law or is cavalier about the Civil Liberties of their fellow citizens. A lot remains to be seen. Its a very limited to be struck ring of things. Its not canceling anything. You want to keep options on the table. Maybe put some limitations on them. I want to bring in our special guests today. Bloomberg contributing editor Paul Kedrosky is with us in the Senior Vice President for communications at the Albright Stonebridge group, a Senior Advisor from the National Economic council. What is the headline from the speech today . The president reset the dialogue about surveillance and security which was really important to serve as an educator in chief to remind people why they exist in the first place and what the evolution was. From that point onward, what kind of partnerships we need to make sure we get the values right. Based on what the president said, are we unable a safe today because of this . Plexus someone who served for 18 years in the government in the state department and the white house who counsels many of my friends in the national Intelligence Community, we are increasingly safe and we have been since 9 11. The challenge is to get these right in making tradeoffs in a way to minimize the risks we take. This is not a zerosum game, but there will always be risks when you try to recalibrate. The key is to rely on the experts in the very patriotic fellows we have working to make sure that the risk is as minimal as possible while working with Tech Companies and congress in that effort. I wanted to ask you a question about this. Silicon valley pretty cheesed when they learned about how the nsa has been subverting security measures to get into systems. In anything the president say made you feel that they will feel better or worse based on his comments . Not really. I think the cheese will continue. I thought the comments were off, edging and over new wants to. To say that someone did not mean to violate that may get into what the definition of is again. Worried that they are more violations going on or things that were perceived as violations. The upside of all of this, the more Positive Side leaving aside facebook and google have been thoroughly embarrassed is from a start up standpoint, i spend most of my time investing in early stage companies, this is a boom time. Whenever we started bringing in so lose, it was a giant subsidy to all security startups everywhere. You have an open Playing Field because the government will continue to be mischievous so get out and sell. The president s speech today did not put debate to rest and there are a lot of issues to be worked out. What is your take on what all is saying here . Did they not take enough responsibility, or should the discussion be behind us . I think one of the pieces the president put out is in the evolution of these programs, congress has been involved, the courts have been involved, but he made it an issue that the public needs to be involved and in that are the private sector partners, those companies we all rely on, anyone who carries a smartphone and so on. In an era where we increasingly put our lives into the cloud and elsewhere, how can we make sure is a country we are able to keep this balance right . Inviting in tech leaders, business leaders, continuing to have them as partners in this conversation is essential and i hope some of that trust and confidence the president is seeking to restore can also be restored here in our own country. Paul, another question for you. If phone data is ultimately going to have to be relinquished by the federal government and placed in the hands of some thirdparty group, will that be a technological challenge . Is the data the same from other carriers . Will it have to be normalized . Whos going to be able to do that . Not all contractors are necessarily up to the task. What is your take on that step in this reinvention of our policy . Lets not hire cgi for the project. That would be the first take away. I totally agree. Its going to get extremely messy. One thing weve learned from five years of messing about his normalization of these data sets is a disaster and leads to all kinds of false positives and correlations where none really exist because of problems fundamentally with how you put the data together. I have no reason to believe this will be different. We should hang onto the data longer because its taking a while to normalize it. Then you get into how long you should hold on to it. We hang onto foreign data longer, domestic data, and whenever you get into these issues, the real messages were going to hang onto the data longer than we would expect because it will take us a while to sort out the intricacies of different data sets from different carriers and you get into privacy and rights issues. We learned today that the government is collecting our Text Messages. What arent they collecting . [laughter] i would not go into detailed Intelligence Matters other than to say some of the nuts and bolts but this is an era where we have to find this balance between everything that we are putting out into the ether and the government. Its important to the former cia senior official, part of the review panel the president put together, and the president himself has said its not on 10 he and collected but tried to get a large swaths of data to look for patterns and so on. It was important that the president tried to divorce this from the sensational aspect of snowden and what hes been putting out and broaden this to a real discussion about how to move forward and whether it is Text Messages or other items that will be part of the discussion. Ban chiang, the Albright Stonebridge group, thanks for joining us. Paul kedrosky will be sticking around with us. We will talk about the next wearable device from google. Surpassing the glass and onto the ipo and we will talk about that coming up next. And onto the eye. Welcome back to bloomberg west. Im emily chang in new york with sam grobart. The next wearable tech from google and these contact lenses could measure glucose in diabetic tears essentially. A wireless chip between two very thin pieces of glass. Measuring the glucose content would be that are than tricking your finger using those blood monitors right now. Its clunky. You can get data all the time. Theyve already met with the fda about this. It seems to be in very early stages. Its interesting to think about google working on Something Like this. We talk about Driverless Cars for a much more mainstream audience but this is definitely more of a niche market. You may start there, figure it out, master that, and it leads you to branch out from that initial idea. Im curious to hear what you think about this, Paul Kedrosky still with us from san diego. You and i have talked over the years about googles focus. Theyre a page came in to try to streamline things and get to go back to its roots. Now we are seeing them back working on these ideas whether it is Driverless Cars, robotic pets, who knows trying to revolutionize the manufacturing and supply chain. What about contact lenses . What do you make of it . I have two levels of reaction. On one level, i love all of these connected sensors, whether it is refrigerators, eyeballs, whatever. More data leads to less food spoilage, healthier humans, whatever. On the other hand, however, earlier i was joking that this was like nest for the eyes. They will know what you are doing in your house, how do you feel about having google in your eyes . Theres the potential for a lot of data flow back. Obviously, that will not happen, we hope, but what i think all of this will precipitate is a long overdue discussion about what fundamental rights we have in terms of data privacy. Maybe google will protect me for now and then it wont . This kind of stuff just cannot go on. There are issues related to hip and other things. Hipaa and other things. Data may turn out to be the most valuable part of all of this. There is this utopian idea that sensors in or on our bodies will know when we are about to have a heart attack and then the ambulance will just pull up next to us on the street. On the one hand, its great, on the other hand, not that theyre the worst people in the world but maybe. If United Health has access to all of that data, will they jack up my rates and do other things . Clicked the implications are a little crazy and creepy. You need to have the legal and regulatory structure beyond just the tech. Even further, there is a reason why you get yanked into the er for an ekg. They track the data for a while because there are many oscillations over the course of 24 hours and you get all kinds of false positives thrown up. In many ways, the best thing is not continuous Data Tracking because humans get wacky whenever we see too much information and we become the great hypochondriacs. Then you have this kind of thing moving and i think theres a risk analysis that when you give a continuous flow of data, they feel this compulsion to back on it and i think its equally dangerous. Im not sure how i feel about any company knowing my body temperature as its happening. We talked about calico, this held company that google has started, very secretive. Nobody knows the real things they are working on, but the broad idea is how do we cure things like aging, maybe cancer. Im not sure how i feel about any company knowing my body temperature as its happening. We talked about calico, this held company that google has started, very secretive. Nobody knows the real things they are working on, but the broad idea is how do we cure things like aging, maybe cancer. Weve been having a conversation all week long about google looking more innovative than everyone else right now. What do you think about what google should be doing . Are they right to be going down all of these different paths trying to own the future even though we dont know what the future looks like . Does that leave other companies behind or not . I saw Walter Isaacson make this point the other day, the author of the steve jobs biography. What are the questions and applications for shareholders . This is an investor class discussion. The reality is almost everything they are monkeying about has zero nearterm positive implications for the stock and many have negative implications because it gets wrapped up in regulatory stuff and they get distracted and health care and decide this foray wasnt worth it. It is laudable but most of this is neutral at best and possibly even negative with respect to investors. I might be asking the questions, thats all well and good, but how many in your company are working on Something Like, i dont know, search . Does this concern like you can be ibm research and all of these other things but you also have to be a business. Right. These are the kind of questions they are increasingly asked in it happened with microsoft when they went into this outside r d spending. We only give you so much rope before start questioning and after that, as investors, people start getting really grouchy about it. One thing to do with their own capital and another to do it in context of the companies. Im uneasy but i just love the innovation because its cool. Bloomberg contributing editor Paul Kedrosky with us from san diego. Coming up, jack ryan, shadow recruit is out today. You can watch us on our phone, tablet, bloomberg. Com, and apple tv. Welcome back to bloomberg west. Paramount is bringing back the jack ryan series. Films like hunt for red doc tober, a total classic. Jon erlichman sat down with the producer behind every one of the jack ryan films. Take a listen. What is it about this guy that makes people want to go to the movies . Jack is an allamerican hero. He is also the kind of guy youd like to have living next door because if your house was on fire and you had to throw a baby after the second story, jack would catch him. Preks multiple actors have played this character eris and, ben affleck, now chris pine. Multiple charactors, harrison ford. Alec did the first one. Harrison, i offered him the hunt for red october and he turned it down. He wanted to play the Russian Submarine cap didnt. I said it was not the kind of casting we had in mind but when i sent him the script, he immediately react to and we had two films with him which were great fun to do. Then we spent a long time trying to get sum of all fears and then paramount said ben affleck was interested. I said he was very young. How do we do that . Then i thought we will pretend we have never done a jack ryan movie before. This is not specifically based on a tom clancy book. How do get a script together when you run out of books . Walk us through that process. When i made the original contract with clancy before he was a fulltime writer and before he had a major agent, i just gave him a standard contract which gave us the character rights, prequel, sequel and originals. I reminded paramount to check the contracts. I thought we could do originals. How many jack ryan films do you think we could continue to see . I would love to see at least two more after this. He wanted to get this done for Something Like nine years . It took nine years. May be speed up the timeline. [laughter] if our Box Office Results are good this coming weekend, i think we will immediately put another one into the works and hopefully we can get that when done in a year or yearanda half. Producer of the Jack Ryan Shadow Recruit with jon erlichman. Coming up, we are going to be talking with the guy who basically invented google glass before google glass. He was wearing here he is, wearing them back in 1993. He wears a lot of other things now as well. More on that in the future of wearables next. You were watching bloomberg west where we focus on the future of business. Im emily chang. Tim cook visiting a china mobile store as they started selling the iphone after six years of negotiations. He said hes working on great things but wants to keep them secret. Sounds familiar. People discovering more news about the world and not just about their friends, the air and they are launching a trending topic feature similar to twitter. It will keep users updated on the hottest facebook topics and will be rolled out in the coming weeks. The president of nintendo says they are considering a new Business Model after sluggish demand for wii u. They are also forecasting 240 million loss for this year. All week long, weve had a very interesting week with Artificial Intelligence. Ive certainly learned a lot. I already knew all of this stuff. Am so excited about our next guest. This guy was basically wearing wireless glasses 20 years before google glass actually came out. Georgia tech professor joining us now from the bureau in san francisco. I believe you actually you are wearing them. This is a prescription pair, but i have my own stuff. Take a look at it. Tell us how that first version came to be. It was 1993. We did not have a name for it. Personal computer was already taken by the ibm pc so were looking around for a name and we came up with the wearable computing. This call Reflection Technology display and this is the fashionable version of it back then. It looks awesome. It has a mirror that creates the illusion of the image. Could you actually see . It blocks one i. But it shares the image between the two so it seemed like i could even though i could not. It was an illusion. Youve been doing a lot of work with google and its a great story because you actually ran into larry and sergei in the 1990s while you are wearing these glasses and later you send them an email when they came out with android suggesting that they consider wearable technology. You said, now that you are doing android, you should really take a look at Wearable Computing Technology weve been working on in academia. Tell me about your encounter with this. When you wear Something Like this and you have a shoulder bag, a big computer remember those old cell phones were about two pounds and you had a motorcycle battery to power it all . I also have a third revision of this wireless keyboard. You are wearing this headset, this keyboard, a device over your shoulder and you are taking notes and conversation, people, to you and say, what are you wearing and why . I was at a little conference for ibm. I was just waiting at the coffee andy Steven Stanford students walked up to me and said, hello. My name is larry and we would like to talk to you about your computer. Can we get a demo . We talked about wearable computing and they told me about this new service they were talking about called google for better web search. It was just grad students talking to each other at the time. About 2010, after it was