Everybody wants to work in Silicon Valley. At a time when banking is so banking, even when the market is up, will they use will they lose young talent . A stigmais definitely against the big banks in san francisco. I cant deny that. Do the any city really to what we heard from goldman investors earlier this week where they want guaranteed returns and goldman is resisting saying we cant give you those kind of guarantees. But our bank 32 . To . Ut our banks ready is there a true shift happening . Earlier today, rob kaplan said that banks will make a ton of money. They can pay the giant fines. But will they attract top talent, innovative people . Do they want to be in a business that has lost its sexy, its popularity, its pride . Where i live, people are looking at start up saying that they look pretty good as opposed to the big banks. Talking about another story happening today, bitcoin, we have been talking about it all through the holidays. We did the 12 days of bitcoin. These anonymous guys founded a currency called coinye. It is named after kanye west. This was not happy about and he sued them. They did not quite back down. Finally they said, ok, fine, ok, fine, coinye said kanye wins. Many people think that that is what bitcoin is about. It could be like netscape. Yes, it is new. It will be exciting, but it wont actually work. It raises a question, look, if Digital Currencies will be legal, you will have these issues. One country where they are saying, no, bitcoin is not coming here, thats china. And the Central Bank Says that you cannot deposit bitcoin. Another story we are following out of china is apple. China has been working on this deal with china mobile, the largest carrier in the world. Finally today, we know the details. This is a detail that is many years in the making. China mobile will start selling the iphone on friday. Who better to talk about this then john sculley, former ceo of apple. John, thank you so much for joining us here today on the show. Apple has had some big challenges in china for a number of reasons. Is china mobile going to be the secret weapon . It was no secret that they were going to have a deal with china mobile. I think people hadnt put into context just how large an opportunity this is for apple. Given the amount of customers . 750 million subscribers to china mobile. Apple, even as their premium pricing is going to sell an awful lot of iphones, i understand that just in first day since they announced it come over a million iphone orders have come in. China mobile is offering a free iphone with their highest data rate plan. For you, is that extra neri . The idea of get is that extraordinary . Sayyears ago, no one would a free iphone. I remember matt miller standing at the iphone store saying that, if this cost at 800, i would still pay that. Is that possible . I dont think so. Like bmw. More google is more like tesla. Bmw has been very successful. Apple sells very high quality products. But i think they are in a great position out. Tim cook has done a terrific job of positioning them to make money not just on the hardware, but it is starting to commoditize and start to make money on the services, the app store and itunes. Even in china, there is a terrific amount of usage of their services on the iphone come even though the market share of the iphone is relatively small. The iphone, even though the market share of the iphone is owing to the small. Yes, a lot people are using it. Theence of the guys unsubsidized cost is more than 700. That is more than the average chinese persons monthly salary. People in china are saying we want larger screens. Why will they pay that much money for a product that isnt even what they want . Lothe reality is that a people in asia obviously china is part of this do want bigger screens. The product is kind of between a the crossablet between a phone and a tablet, not my word. The phablet is tremendously popular in china. And it is popular throughout all of south asia. But doesnt Samsung Galaxy kind of look like a phablet . It does. It looks like a tablet. There arent a lot of things by samsung that look like apple products. Samsung went one step further than apple with these larger screens. Sam song unquestionably does a google job with the hardware. Where they havent yet shown the same level of competence and talent has been on the software and the services. In Silicon Valley, they built a big campus to get into this, but there is not much evidence yet that they will have the same level of success with Software Services that apple has with itunes and the app store. [phone ringing] iphones. Ng of we have been talking about google buying a digital thermostat maker. It has bought a dozen or so robotics companies. The last new product they introduced was the ipad many the ipad mini, which is just a small version of the ipad. Is apple feeling the pressure to come out with some new products . Are they looking a little behind . They dont feel like innovators. Well, i think you have to look at are they doing what they want to do . Apple has always been a company that says we sell to the people who love us during anytime you introduce a new apple product, the installed base of apple owners will go out and buy it. And apple can stay up at that high because people love the experience. Apple is about great experiences. No, i dont see a big innovative product since tim cook has been ceo. That even when steve jobs was ceo, a new product only came out every six years. When will the next one come out come out . Tim cook has set the expectation that went 14 will be a big air. Will it be the tv . Will it be the watch . Would be Something Else . He has set the expectation that Something Big is coming. What about a product that nobody cares about, the blackberry . Is it officially dead . I hope not. Oh, my goodness. I cant believe i am hanging out with you guys. Is there anyone in seven cisco that owns a blackberry . Not necessarily by choice. There was a story that i can talk about a little now because it is afterthefact. I was actually organizing a group to go in and bid on buying blackberry. We saw a lot of hidden value, assets in a company that was really in desperate trouble. The company decided to not go forward with their auction. They pulled the auction and they brought in one of the most respected ceos in the tech world. Billion tofor 5. 2 sap. And he has brought any traffic number of people. If anyone has a chance to turn it around, it will probably be john channon. I love the keyboard. I still love the keyboard. But, come on, what else . Beshe hidden value of it is. We are interested in it because we have a company in south florida that does the next generation of biod. We are building all of at ts data services. Blackberry Enterprise Services carrier relationships around the world. If we could put those two businesses together, we could create a business as big as workday overnight. So we would have decoupled the hardware decide hardware devices. We would have kept the blackberry Enterprise Services. If john channon called you today and said, john, i need your help, be my partner, would you take that call . Not take a call from john channon . They have dropped the word interim from his title. So it looks like he is it to stay. They are pretty excited. John scully, well continue with you after this break. We will talk more with former apple ceo john scully. Next up, the nsa. We are in a different age today. Surveillance in the cold war, summaries chasing each other around in the ocean is different than dealing with shadowy enemies who seek to do great damage. This face it. The homeland of the u. S. Is the number one target. Welcome back to street smart. It is the latest in the nsa surveillance saga. Today we learned that the agency has placed serve place Software Realm of world that allows the u. S. To conduct surveillance on those machines using radiofrequency technology. This is according to the new york times. We are here with john scully, the former ceo of apple and also present at pepsi. But i want to bring in chris strong who covers the nsa and Cyber Security for us. Chris, as i understand the story, the United States government can get into computers ends eye on computers that are not even connected to intonternet hearing computers and spy on computers that are not even connected to the internet. The u. S. Is able to insert exploits into devices before they are actually shipped abroad. This would be the company basically covering products basically being asks us being accessed by government officials. The other way is that you have essentially some kind of a device, like a usb drive that is attached to a computer, and that begins to excellent trait data data and to exfiltrate send it back to the u. S. Government. John, what you think . A few years ago, when the israelis presently, with some help from the u. S. Government, were able to break into the Iranian Nuclear development ,enter and did it without wires this was kind of a breakthrough in technology that we really didnt quite understand. This sounds an awful lot to me like the stock net technology. What you think, chris . I agree with you. It had the capability to essentially phone home, which is the ability for the malware to be able to receive commands and to aibute information back central point. And that was kind of one of the biggest exploits that kind of reshaped the debate over Cyber Security. It showed that you are not just talking about malware that is on computers just to kind of monitor what is happening there. Youre talking about malware that can actually cause physical distraction. Because the virus was intended to wipe out the iranian centrifuges. Since then, there has been a lot of concern obviously inside the u. S. Government about the capabilities of adversaries to kind of bring that back to the u. S. Is this all way too much information . John, could we say that, edward stoneman, you may have cracked something, but something we didnt need to know . We may not need to know everything. But it is one of the rare examples in government in our democratic system which you know is messy and sometimes inefficient, but sometimes it works pragmatically. My guess is that it may take a few years. But as a bipartisan effort, our government will figure this thing out. And we will come up with rules that we can live with. At the same time, it wont eliminate our ability to be able to track the things we really need to track. So its not going away. It may go away from the headlines in the news, but it will go away in terms of its use by the nsa. We had an 18tweet series about this very thing saying we are increasingly on some collective thinking couch. Oh, my word, i cant believe that spy agencies spy. On the one hand, they are supposed to catch the bad guys. On the other hand, they are being told dont spy. I went to simulate a university. One of the programs we had there was on cyber crime. And the estimates they had was that about 15 of the r d spent in the world every year goes into criminal type it to these that is done by criminals, very smart technical people in places like china and russia and Eastern European countries. This aint going away. I think we do have to have some level of security surveillance. It probably be a lot more control than may be limited from what we had before. But it is not going away. Do you want to make a final point . Everybody is watching obama on friday. He will make his public speech in terms of announcing what kind of changes to the nsa program there will be. Air is a lot of attention given ,o the nsa breaking encryption hacking into cables abroad on Companies Like google and yahoo and it remains to be seen if obama will make any substantive changes to that. All right, chris strong who covers cyber securities for bloomberg. John sculley, former ceo of apple. We will be right back. We are here joined by john sculley, former apple executive and president and ceo. According to the labor department, only 12 of women workers get paid time off to care for a child. But states and congress are hoping to change that by offering Insurance Programs and new legislation for a family leave. Therding to economy since, share of women working in country is sort in countries such as germany have passed the u. S. In those countries, women get leave that are six months or a year. Emily, you could say it would be a game changer if more women here could stay home for that amount of time. I would go back to work. ,ut do you honestly think especially think about technology companies, that need to build their business, could they say to their employees, you can be off for a year . Could they afford to do that . They are differently working towards that can at least Silicon ValleyCompanies Like facebook. The policy that she instituted is that men get the same amount of leave as women to encourage fathers to take the time off with their children as well. The question is everybody going to take it . One of the questions i have is how dealing courage people to take the lead that they actually have . Obviously, businesses are not doing a good enough job of it. There is another piece to the story. The technology we have today versus 2007, when the first iphone was introduced, it really enables people to do incredibly Amazing Things working from home. So you could give somebody time off to be at home, but you could also be able to enable them to get back into the workforce working from home parttime. In fact, parttime workers are the fastestgrowing part of the new jobs created in america. Feel the heat sort of rising up between us. Possible for companies to change their expectations of their employees and say dont come in on weekends . Dont sleep under your desk. That is hard to do because, certainly in the hightech industry it is hard to do. Women are the untapped talent pool for americas recovery among i think. Americas recovery, i think. Who has the best grades in universities . Women, not the man. Who are the most adaptable in an area that is not it that is no longer a commandandcontrol economy but one that needs relationships . Women. There should be more women on boards and in executive positions. If you start doing those things, ladies, you will start to see more constructive policies like more time off. Do you think that we need quotas . No. That would be an uncomfortable way to do it. What we need to do is get awareness in getting women into higher visibility roles in companies. You need more role models out there. But dont you think attorneys realize there are not more women at the top . I think they realize it, fory, but they realize it the moment in the conversation and then they go on into the five other things. One of the issues is that women still make . 75 to a mans dollar. For many families, when their children are school age and they have lots of conflicts, they say as a family, guess what, theres not enough time. Someone needs to stay home to take care the children and that decision gets made based on finances. And in us families, if the man makes more than a woman, she says i will have to raise my hand and go home. So until women are making the same amount of money as men, when they have is limitations, more women will say i will take the fall. A man amen. I need a high five for that. , ladies, i am older than you are. When i was in college and women were better students than we were, they all limited they all ended up in limited job careers. John, i wish we could have more time on this, it will change. Welcome back to street smart. We want to take a quick shot at the markets. This, before we get into we have to take a quick look at these markets. They are green. We are having a positive day. The s p 500, the dow and the nasdaq are. Volumes are thin, which is extruded area. The start ofust the year. January is usually a huge month for the industry. The volume is somewhat suspect. People are still feeling somewhat cautious about the market. Still a lot of uncertainty out there for sure. I want to do a little Word Association game. Staying on the subject of women in leadership, basically just show up what comes to mind when we throw some of these things out at you. Emily chang, do you like her . Absolutely. [laughter] hillary clinton. Great leader. Maybe well have a chance to shine in the future. What are her chances . I dont think anyone could really say with any confidence who will be the candidates. So much happens between now and 2016. At this moment, it looks like the nomination is hers to lose. You are a longtime friend of the clintons. Didnt use it next to her . I did, but i should say that i am not a democrat. I was a republican. I am now an independent. I am fed up with what is going on in both parties. I think kerry would be great, i think but i am hillary would be great, but i am waiting to see who the republicans come out with. What do you think of elon musk . I think he is one of the true innovators everyone uses the word innovation and it is thrown around glibly, but he actually does it. Tesla. It with he wants to go to mars and live there. My god. He is. [laughter] how about mary vara . Who . Lets move on. I think there is a point there. She is the new ceo of gm. I did know her name. Im sorry. It was her first day. I actually saw her in the background because the sound was off on some of the tv things. I did not know her name. Theyre interesting to see someone stepping up to run an oldline company, not a new hightech company, but an old one company. She really has a pretty big following. People think she is going to be great. This is a story this have been covering for weeks. She is a person who grew up in the industry at the company. Now we will find out if this is her opportunity. I want to get your idea on Tech Companies if they are here to stay or we will be getting about them in two years. What do you think of [indiscernible] outstanding. An absolutely wonderful idea. I use it. We are seeing a whole trend towards we no longer have an ownership society. You rent it when you need it. Whether it is mover or left whether it is mover there it is uber or lift. I have tried the other services. Thats my job. But theres so much controversy on search pricing. People get really pissed off. Shouldnt have too when you knew the car the most. When youre walking along the streets in new york and the taxis are in the change over time, you will pay almost anything to get something. It is a great ride and a great service. Another g