Morgan stanley rose this month. The comity seeing a gain in equity revenue. General electric saw its stock fall the most in seven months. The company failed to deliver a profit market margin. Quarterreport first adjusted earnings that rose 16 5. 42 billion billion. Reject did ak has takeover bid from mens wearhouse. Thank you. President obama today proposed changes that are intended to strike a better balance between National Security requirements and civil liberty protections, as well as you tour operations of u. S. Surveillance programs. Our chief washington correspondent, peter cook has more of the president plosser, and reaction to them. The president tried to walk a balance been today. Beam today. Offering a spirited defense of the u. S. Intelligence agency, saying they offered no indication they were volatility the law violating the law. From the disclosures edwards noted, Public Confidence has been called into question, and it is time for some new restraints. Americas capabilities are unique. Power of new technologies means that there are fewer and fewer technical constraints on what we can do. That places a special obligation on august to ask tough questions about what we should do. The biggest changes outlined by the president , the collection of phone records will shift away from the nsa two unidentified to an unidentified location. Also learners all foreigners will get the new privacy protection. Tech company will be able to disclose more information on government requests for information, something they have lobbied for for some time. Eight such compani, including google, facebook, and microsoft have seemed there have seen their businesses harmed by allegations theyre handing over information. They say more changes need to come. Is a positive progress on key issues, including conspiracy from the government, and what companies will be allowed to disclose, extending privacy for directions to nonus citizens and fisa court reform. They remain to be addressed on these issues. Telecom Companies Expressing similar reservations after the president s announcement. Asking thent attorney general eric holder and the Intelligence Committee to work with congress to come up with an alternative i march 28 by march 28. What was the reaction to the plan . A mixed reaction. Re were grizzled criticisms that the president had not gone far enough. Democratslicans and have said they will work further in congress. Perhaps the resident went too far with some of these changes. The president did not please everybody today. Our chief washington correspondent, peter cook, thank you. Our next guest, at the heart of the security programs. 37 National Security experts that find an open letter asking him to review key components of the nsa capabilities. Was themichael hayden head of the central l cia 20072009. ,009 we also have peter hoekstrea adviser. R you couldering if start us off, what is your reaction to the president s speech today at the Justice Department . It is one of the things that i find a president ial speeches. Big always talk in the picture, theyre talking a 30 to to 50,000at 32,000 feet. We are going to be able to determine the truth after the details are outlined. The devil is in the details, and we do not see that today. Things that were talked about at 30,000 feet, i could agree with. , andow we can make it work see how we can use that to our intelligence capabilities to get americans they. Was your reaction . I lot of to like about this speech. It is the most robust of the intent defense of the Intelligence Community that the president has given. He also did not accept all of the recommendations from a special commission. He was very careful in discriminating. Able back with regard to againstip collections foreign leaders, and that intimate client clear that we are going to resume foreign leadership intentions go and we are going to target other governments. All of that is good. I am with the congressman, though. The details are going to be very, very important. Themetadata program, president said that this is a very important program, and it has been very well run. There have been no additional abuses. That weloving tell you did tell you im going to change now i am going to tell you how i am going to change it. Done, two carefully chains of the that has been to change something that has been working well. Us when thatll program was started, why it was dirty, and the circumstances around it . It was started in 2001 under president ders under bush. The legal structure under which the program was struck was conducted was changed. Congress had passed legislation that brought the program under oath the local branches of a both the president and the congress supported it. In addition, it was run under the direct service and supervision of the fisa court. Separation of powers between competitive ranges of government, this was the trifecta. By to president , legislated by covers, and twoseen by the courts president , legislated by congress, and overseen by the courts. Existing laws to protect Civil Liberties. We known that there was an Inspector General report that was conducted in 2009. It said that there were certain limitations that the department of justice lawyers wanted to put on the nsa, but they had failed to implement that. What is your thoughts . The interesting things here is that general hayden briefed me on this before i became the central Intelligence Committee chairman. There was full transparency, at least at a time when i was the lead republican on the Intelligence Committee. Ranch the executive branch, always give the only informed. There were at times a spirit of debate as to what the executive branch wanted to do, what general hayden wanted to do, and the latitude that congress was able to provide to him and to the executive branch. Through thisked process because we were conscious of balancing National Security and Civil Liberties. There were times of course, and the president acknowledged that in the speech today, where he said Large Organization up. Times grew up 0 screw there were mistakes made at the National Security agency, they may have stepped outside of their lane. They did come to congress, they explained what happened, and they explained the changes they were going to make, they were very conscious of big sure they stated the lane and did not break the law, and provide rotections tol p americans. It was a very effective way of working together, as the general said. The different branches of government were represented, and were well represented in the process. , we are going to continue our conversation on surveillance and National Security. This is taking stock with pimm fox. This is taking stock on bloomberg. I am pimm fox. Today marks the 53rd anniversary of resident point we president eisenhowers farewell mericans. O a we must guard against acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. Here to tell us more, the former National Security agency th director, general michael and former House ServicesIntelligence Committee chairman pete hoekstrea. You made tactical decisions because of the current situations. Is it possible that those tactical situations then turned into institutional mandates that are just too big, and too unwieldy to reassure the public that they are being handled correctly . Pimm, that is a great question. It is at the heart of the issue here. As a people google want to do in balancing our security and our liberty . Make no mistake, people listen that is a false choice misinterpreted. It is a hard choice, and it is one that we have to make all the time. My are probably hitting upon deepest concern about the president s speech. Theres much to like about it, but the deepest concern is this , the president has said we may have overreacted in the post9 11 world. His Commission Said that some of the authorities created or expanded after 9 11 unduly sacrificed democratic crossice is, individual liberty, and process,privacy individual liberty, and personal privacy. If we use the metadata program, and you make nsa, in addition to not being able to store the data, but have to go to a judge to give permission to query the collected data, that sure does not feel like the post9 11 world that i lived in. That feels like the pre9 11 world i lived in,. That may be the right answer, but we should not kid ourselves. We are going back to the old way of doing business. Youongressman hoekstrea, know about the 9 11 commission report. Tell us your response. These programs have proven to be very. Effective. I do not think there has been an overreach or we have institutionalized it. Se wrestle with these issue on a regular basis. There were sharp divisions within the committee as to exactly how far these programs should go. There were sharp disagreements between the committee and the executives from the executive branch. An ongoingen rigorous debate. We did not accept something because it is been there since 2003, these were always gone back over and thatect that move, caused debate that you described a and those debates were held with people with security clearances and various positions within the administration. But when information is revealed all over the internet through a former nsa contractor, edwards noted, that debate becomes public, and theres very little weight back to get to get that back in the bottle. It does not mean that you change the programs, or the tools that you need to keep america safe. Like general hayden, im glad that the president gave a vigorous defense. We need to take a very close look at that in the downs community in the Intelligence Community, we need to expand the protections for whistleblowers. Edwards noted is not a whistleblower snowden is not a whistleblower. I think the other major discussion that is going to take place, and is key to this is making sure that we have a dialogue with the business have seen as we number of tech businesses believe that bir they are being hurt by the pressure put on them by the u. S. Government. We need to give them the Legal Protection to compete and be successful on a global basis. We cannot use these changes or these reforms, or what we need to do to keep america safe to harm american business. In you could change one decision if you could that you made in your tenure after 9 11, what would you have done . It is a pretty easy question. As a member of the Senior Leadership of the house Intelligence Committee, but he did not get the briefing until he was chairman. If i had it to do over again, i told push even harder breathe all of the members of the Intelligence Committee, not the just socalled gang of eight. You general thank michael hayden, thank you very much for joining us. He is the former head of the nsa. And congressman peter hoekstrea will they do will be staying with us. Whatg up, we will hear else he has to say about national liberty. National security, surveillance, and your privacy. Congressman peter hoekstrea is a former House Committee chairman. Joining conversation now from the american civility Civil Liberties office is patrick toomney. You have been listening to the debate, and also heard the president s speech earlier today. What do you take away from the president s words . Of thee heartened i some privacy protections he mentioned, but at the end of the day he did not what it into the collection of the American Private data. That is a critical flaw in the proposal that he put forward. The question of our day is whether the government will collect information and use it later, rather than using targeted information towards those that have been targeted as criminal. You favor the latter . Yes. We believe the government should use the existing authority to seek information about those and it is already developed criminal collectingi jalopy information of ordinary andssion for use should not be collecting the information of ordinary americans for use down the line, it awarded want to target someone at that stage. What do you think about this proposition. Acknowledgedent that there was value in the Collection Program, this program is going to continue. What the president laid out is that it is that she is looking for a solution that has not been identified. The program has been signed off by both democrats and republicans. President obama, they all recognized that this projection pro wrote action was tection was legal collection. White agree with the house coming out today and say it is legal and necessary. The bottom line is that if he basicit somewhere in, the integrity of the program is going to stay in place in. Your response . Movingdo not think that the Collection Program under the auspices of a rival consortium solve the problem solves the problem . Be government should not involved in collecting massive information on its citizens even by proxy. That would continue to invade the privacy rights of americans. We have to leave it there. Thank you. This is taking stock with pimm fox. This is taking stock on bloomberg. I am pimm fox. With todays headlines, carol massar. Bank refuses a takeover bid by mens wearhouse. Set aside aey smaller share of revenue to pay its employees of the Investment Banking and trading division. Down for five percent from a year earlier. Fourthquarter earnings that trailed analyst as a mets estimates. Full results will be released by 20th. January National Security agency does tost, they have the ability under a variety of communications. Were some see an obstacle, some seem an opportunity to protect your privacy. A phone that aims to protect your energy identity while you browse the internet. What is the product that you hopes to ensure anonymity when surfing the web . Aboute blog is all personal privacy, and one of the issues they have is that as they are surfing the sites they go to every day, there are a lot of people that are following them, understanding who they are aware they are, and where they are going to. We are trying to bring back personal privacy on the internet. You have a 49 device, what does it do . This box takes about 60 seconds to install. Once you have it installed on anywhereork at home, you go, you truly relate anonymous remain anonymous. Address you have an ip address, and whenever you go to a site it is logging where you are. If you have the safe search on, it is not able to track who you are or where youre coming from closing you cannot be followed from, so you cannot be followed. Does the u. S. Government have any say about this . That is a great question. A network that was created by the u. S. Government. It is been around for many years. Billions of people use it around the world. It is one of the few services that the nsa admittedly are not able to crack. And has been thoroughly tested, it is an amazing service. In which youny way are responsible for anything bad that might happen as a result of an autonomous browsing experience . The irony is that the bad guys out there, the ones that are trying to do bad things have been anonymous for a long time, and of all sorts of tools through the years. It is the good people, the ones that have not been given the tools for privacy. If you wanted to do something bad, there are other ways of doing that. This is meant for everyone else, people who have great intentions, and want to feel favor of the internet. Safer on the internet. What about laces where you are told not to bring your mobile phone, or your own laptop, or to select some new equipment . Absolutely. This is a really important tool to use anywhere. People from politicians to corporate workers, both the United States and overseas are using it already. It is proving highly effective. A lot of our investors are using the same service. Where trying to begin so easy touse that everyone such as you and i can feel confident in the technology. Is this sold on unnamed individual basis on an individual basis . Corporate packages . Right now it is available on m,r site which is pogoplug. Co and the entire transaction is anonymous. It is being sold individually right now, and we are going to see merger a larger bulk sales to corporations in the near future. Have you had any pushback or conversations with Law Enforcement officials about the anonymity this might give to people who do not have the best of intentions . We havent. It is based around a technology that has been in the Public Domain for several years. The tor network. It has been accepted as a really positive invention, created by the military for both the military and state department officials. Any pushback,been people are excited about it and oingle see us as d something that would give them more privacy. Thank you for joining us. Coming up next, it is friday, and before you your order bar ual forget the drink at the bar, im going to tell you about a new one. Bring new guests meaning to the phrase thinking outside the box. They are looking to entice wine enthusiasts with a chilly cabernet or a separate sikh white wine. I have two out of three of all of the employees, i do not know how we did this. , how did you decide youre going to make wine that comes out of a box . World,s in the start up he was working in advertising, and we are entrepreneurial gentleman. Job,u are looking for a and you had background working with Johnny Walker . I was actually working at and eventually we did the rational things and quit our jobs and started a box wine company. Why did you decide to do this . You were in the advertising business, why go into your own thing . I have to say, it is bait great to be in advertising for other people, but we love wine to and we felt that there was more to life than coming out and nine. The 929 nine to we jumped into the deep and. End. We liked wine, but we felt like wine was difficult to drink to especially with friends. Bottles break the easily. And boxed wine needed a facelift. Decided to play on the benefit of the box, putting some cups and their in there. Tell me about these wines. These are both from chile. Quality, as it is known for having a good rice to quality ratio price to quality ratio. What kind of price points are we talking about . These both typically retail for about 30. Does that compare to a bottle of wine at the same volume . There are four bottles in here. A difficult to establish a relationship with the winemakers . Is like a boys club. It is a traditional partnership, ideal to get off the ground very it is very good wine. Youre not just getting four bottles of incentives, but it is a supply of four weeks, after opening. Because of the receptacle it is in. It retracts as you pour. Out. E air is forced yes. This competes with a lot of other products. How do you muscle your way onto the shelf . Getting on the shelves is a different animal in and of itself. We are an unproven brand, so just grinding out, going to the stores everyday day until they accept you. And then you build a little bit of momentum from there. Getting people plus mind share, that is a hold other animal. Mind share, that is animal. Other people that come into this are not going to buy this because they are looking for a chilean red wine, they are not sure what to get with their rents that are hanging out of heavy beats up with their friends who are hanging out for pizza. This could be sold in Convenience Stores, rather than wine shops. See this as a wine store product, because the truth is the Convenience Store is seen as a lower end product. Where would you like this to go . We are in the midst of cutting a deal in tennessee. We are doing some fundraising of entering a following year, we can expand and other major markets. Is this something that you just took a shot in the dark . I should talk about the last article third of the company. Takingnstrumental in this from a great wine to a quality wine. Above and beyond in making this a good wine. Did you construct all of this, and say this is not going to work . And the other one said do not be make about it be negative about it . I thought it was stupid, but i was proven wrong, and im glad. Jordan gutman and steffan bankier. Coming up, we focus on an Emmy Awardwinning film maker. My next guest is a pioneer when it comes to providing a platform for team changing women to be heard. Award mcghee is an emmy winning the liquor filmmaker. Female the first secretary state, Madeleine Albright, she has covered many strong women. I can only hope that my heels follow your shoes fill your shoes. Our life comes in segments, some of it broken up by the time to have children, or to have a career. Think that women can do everything, they just cannot do it all at the same time. Ers projects mak was inspired by Gloria Steinman. Thank you for being here. The reason you say right place, right time, is because there was a moment where you were interviewing Gloria Steinman, and what happened as a rule of that meeting as a result of that meeting. Americans,one african the president , but ive never done anything on women. So i went to Gloria Steinman but the pioneer of the womens movement, and centrally about tell me about your life, and she said you cannot omen the story of w through one woman. So i started makers to tell the story of groundbreaking women. When did this begin . Nine years ago, if you can believe it. What was the Biggest Challenges . Raising the money, getting the people . Getting the people. How do you choose . Women make up over 50 of the population. How do we pick these makers . Aol and pbs and got behind it. And said lets use both of our platforms to make any an impact. What would you like people today google to take away . Stories. D more womens we have done 200 plus makers, and there is no dna of a maker. Everyone can come and learn something else. Moreeality is we need womens stories out there. Womens lives comes in segments, that may be quite different than those of their male counterparts. Tell me how that influence above the people you focused on. In terms of . Family life one of the things that came work balancee challenge that women go through. How to help women advance in the workplace. Were bringing everyone from Sheryl Sandberg to the president scs. Sex asi i would love it. Is there a prescription for this life, work balance . Laws,laces have labor Maternity Leave is limited to a specific segment of time. Is there something we can learn . We have a long way to go in this space. One of the things that is interesting to me is that this womensan not just a issue, men are dealing with this too. It is not Work Life Balance anymore, it is work integration. Need to goen together and talk about how we can deal with this issue. You have government officials , keller clinton, Madeleine Albright hillary clinton, lbright, was there any difference between those in the public sector, versus private . Publicure in the sector, youre in this bubble. I think the thing that we need to realize is that whether it issector are publicsector or public sector, we have female ceos in fortune 500 companies. We need to focus on this issue of getting women through the top. Sheryl sandberg is talking about it a lot. Is there a particular educational route, or educational policy genes that needs to take place . , technology, engineering and math. Girls are underperforming. This is where it is booming, the jobs are there. We need to get girls into those fields. What about raising the money to make the movie . What was that like . Raising money was the easier part. Really . How much did it cost . It is a huge, ongoing project. It wasnt about starting one, and telling one story, we are doing multiple stories. We have six more documentaries coming out this year. We have been fortunate to have extraordinary partners like aol have wanted to get behind it. Are there specific women that you have yet to include that you would like to . Yes. Can you tell us . Tina fey, where are you . Can you help me with that . Who else . One of the things we try to do, we are preserving the stories of groundbreaking women. We missed sally ride, the first female in space. Those are the ones that break your hearts. It is important, what we are doing. Where can we watch this . Makers. Com. Thank you. The makers global Conference Takes Place in california in february. Thank you. Bloomberg west welcome to. L;come to bloomberg west sam grobart is with me in new york. We are talking about the president s big speech and potential changes to the surveillance policies. The number one big thing as he has ordered his top legal and intelligence officials to think about how and where the data theyre collecting allowed us about us is