[closing bell ringing] scarlet: yellen's speech tipping her hand to a rate hike sooner rather than later. mario draghi expected to announce additional stimulus. that decision comes tomorrow. alix: and how things are looking in a private equity sector. we're going to talk to a fund manager at kkr about being a woman in finance. , we are of course following the breaking news out of san bernardino, california. let's go to mark crumpton for the latest. mark: the associated press is reporting that the president and ceo of the southern california center said the police focus is on a building that houses at least 25 employees as well as a library and conference center. the inland regional center is

where the shooting took place. initial reports say as many as 20 people were wounded. television in los angeles reporting there are fatalities. a triage area has been set up as authorities searched for one, perhaps as many as three gunmen in this shooting. again, the second mass shooting the united states in less than a week. shooting in colorado springs, colorado at the planned parenthood left three people dead and nine others wounded. the white house is confirming 'sat president obama counterterrorism expert has briefed him on the situation. federal, state, and local law enforcement authorities and agencies are on the scene of this mass shooting in san bernardino. initial reports saying as many as 20 people were wounded. reporting that there are fidelity's. we will continue to follow the

story and get you more information as soon as we get it. so much, mark you crumpton. we want to get you a check of the markets -- so much for that december rally. speech,net yellen's they took a leg downward. overall, it was a relatively typical fed reaction when it comes to them being more hawkish. you could see the dollar rally but off the highs of the session. you saw a come out of the treasury markets and yield rise for the two-year and 10 year. lowereally drag markets was energy. the s&p energy stocks were the worst performing sector on the s&p. correlation over the last few hours, energy really taking stocks down and that had nothing to do with the fed. that was really about the

inventory report. the: the -- scarlet: backdrop is that janet yellen is signaling confidence in the economy ahead of the fomc meeting. here is what i found interesting -- her admission that the federal reserve is behind the curve. she admitted that they have kept their policy stance even as the labor market has improved substantially. she says the cautionary stance is justified because the rates are near zero and that makes it easier to respond to flat inflation. interestings an point. what stood out to me was looking at the neutral rate. ,he actually came with a chart so this is the natural rate of what it would be if the economy is operating at full speed. being on the right-hand side of that chart, we are right around zero. we are basically where the fed

funds rate is. one is that the natural rate could rise faster than the fed funds rate and the other issue is the fed can't tighten that much more quickly because that would mean a huge tightening. , to me, i found to be very interesting. is where the debate goes forward and will dictate the path. we will only know once we begin left off. alix: and to your point on inflation -- let's take a deep dive into the bloomberg terminal here to see what i'm looking at. , core cpe --cpi all the inflation mode -- all the inflation measures you could want to look at. here is this optimal level -- what happened here? try it again.

right around here is the optimum level for the fat and you can see we are below it all across the board. this is their big dilemma. they want to see it getting into the range of 2%. i'm looking at euro volatility ahead of the decision tomorrow. theeuro-dollar pair is white line recovering to the 105 thinkingth investors draghi will boost the economy and get inflation going. the yellow line tracks euro volatility. it's not the levels last seen in july. we have to go all the way here to get to euro volatility. volatility has jumped almost four percentage points since the ecb's last meeting. a lot of anticipation built into

this meeting tomorrow. alix: you can see the ecb might might lower euro, but it not be good when a central bank is looking at the data. for more on europe, robin brooks atthe head of fx strategy goldman sachs. scarlet: is this more about the fed and the dollar strengthening or more about euro weakness in anticipation mario draghi will do more in terms of stimulus? : it's all about anticipation ahead of tomorrow's ecb. the drop in the euro to current thels basically began after last ecb meeting on october 22. so much of it is anticipation. alix: you predicted that euro-dollar would go to 1.05. when it comeshigh

to euro positioning. what do you think happens tomorrow? before one of these important central bank, and this is one, is always a moment of truth for investors. much like back in january when qe was first announced some others a lot of nervousness about positioning into this meeting. my own senses is we will get a move in the euro, two or three big figures lower. we will get a surprise tomorrow and president draghi will deliver in a forceful way. scarlet: and he has done that every single time. that is one way he has over delivered. when do we reach parity? robin: we expect tomorrow to do two big figures lower at least relative to what is priced. there are a number of dimensions where he can surprised

officially. we think we will reach parity at the end of the year. we think the fed is another catalyst and that will take us toward parity by december 31. ,lix: which raises the question does qe actually work for the eurozone? if you look at the german 10 or japaneselds yields, you find is a lot more volatility in german bunds. the yellow line on your screen, you can see that volatility after the ecb's qe. you don't want to see volatility in your yield. robin: that's exactly right. that's an important point that hasn't been discussed enough in terms of ecb qe. what you want is exactly what he said -- stabilize the curve, keep the safe haven so you get people into risk asset and boost growth.

boone's -- bunds have been volatile and the ecb qe has had a troubled history and that's the reasons draghi has to be dovish. he has to fix that tomorrow. scarlet: if you look at the different data points out of europe, we have seen some stabilization in the data and as we discussed the prospect of more qe, if you look at the output, you could say it's a lot worse than you think. what is the case for adding to qe1 the data could suggest we are improving in europe? alix: we are looking at a chart of the output gap of u.s. versus the euro zone. it doesn't look that bad. robin: i look at that chart and i often think the market has stockholm syndrome. that's when you start identifying with your kidnapper. in europe, we have had tight monetary policy for so long.

it's only qe we have gotten this year relative to the fed that people have gotten used to low outcomes. the thing that is so striking to me about that chart is even with the recover we have had an eurozone gdp, we are below the 2008 he in eurozone gdp. we haven't even made it back to 2008 levels. scarlet: heading into tomorrow's meeting, what's the biggest risk for investors? : the announcement comes in two parts. there's a announcement that happens at 7:45 our time on the east coast. then there is the press conference 45 minutes later. there is obviously a possibility that deposit rates, which are currently at -20 basis points, get cut and that market prices 15 basis points in additional cuts.

my personal expectation is there's a good chance we get a surprise in terms of the more dovish outcome. conference the press , i think it's highly likely we get an extension of the program. it's quite possible to get an upsizing of monthly purchases. there are plenty of dimensions where he can surprise. a longer terme is efficacy of any kind of program, we discussed it in terms of the bund yields but also the ecb being behind the curve. that opens up the amount of bonds they can actually buy, but those bonds go deeper into negative territory so the ecb is on a hamster wheel and has to keep doing more to prop up the economy. how does that play out? robin: big picture, you have a limited number of opportunities when you can ease. therefore, you have a limited number of opportunities to

surprise the market. therefore when you do ease and he has essentially pre-committed himself to ease at tomorrow's meeting, you have to surprise the market. he's got to make it count, given you have limited opportunities. that is my-- overriding logic and tomorrow. we are finally getting toward liftoff. is mario draghi following the fed. spain book -- playbook, or is he making it up on his own? robin: in europe, there's a lot of resistance to the kind of quantitative easing programs the fed did. things like operation twist and these unconventional policies that in terms of the united states were relatively uncontroversial compared to europe. i think mario draghi's near-term obviously to fulfill

his inflation mandate. we got very low inflation numbers for europe today. importantly, the old terrier motive is to turn the ecb into something closer to the fed, a real european central bank. going into unconventional territory for phils that aim. alix: -- fulfills that aim. alix: thank you very much. scarlet: next up, we will talk to one of europe toss top economist -- top economists about how the moves could affect the eurozone data. former senator bill bradley joins "with all due respect" at 5:00 eastern. ♪

alix: i'm alix steel. "what'd you miss?" we are following breaking news out of san bernardino and a mass shooting. let's get to mark crumpton for the latest. that we are receiving word police are confirming that there are fatalities in that shooting at a southern california social services center. officersrdino police told kay cbs tv that there are multiple casualties and some confirmed casualties. she says she does not have specific numbers and told the television station that it appears there is more than one shooter and she believes they were wearing in her words "military style attire." the shooting taking place a few hours at go about 60 miles east of los angeles. initial reports said as many as 20 people were wounded, but we

are getting confirmation from police that there are fidelity's. the search for the suspects is underway. -- that there are fatalities. we are hearing word that there are perhaps as many as three people who carried out this second mass shooting in the united states in less than a week. we will continue to follow the story and bring you information as soon as we get it. alix: back to the markets -- tomorrow, the ecb and mario draghi are expected to announce additional stimulus. one thing on the table is cutting the deposit rate into further negative territory. the ecb has a bunch of tools at its disposal. they can cut the refi rate, so what are they actually going to use? my guest joins us live from geneva. what do you think they are going to do in terms of the rates? in terms of the rates,

they have built up high expectations. it would be very surprising for 10% -- byo raise by 10 basis points. i would say that is the minimum they could do. what about qe taking a huge role on the balance sheet? remember it has been more than a year that they set these balance sheet targets in terms of size and composition. i guess it is not so much about the size anymore. at least it is not 3 trillion or 4 trillion. it's much more about the asset composition toward the periphery and more risky assets. we will betomorrow

looking at draghi in terms of what he announces in terms of the duration of the program. in the end, for the real economy, what matters is how the ecb will buy during the course of the next few months. alix: that has been a criticism, that it helps countries like germany and france when countries like spain and italy need the help. what do you need to see to be surprise in terms of dovish action from the ecb? frederik: it depends on the markets. if they don't cut more than 20 higheroints, it might be at some point. short end oft the the german currency, i don't see it going much lower unless the

ecb surprises. might be a bit more in terms of credit markets or equity markets where you could see more positive reaction in terms of the periphery area of the eurozone. let's talk about inflation. if you strip out food, tobacco, oil, you look at those measures of inflation, it looks like it is rising. we may not be near mario draghi's intended target, but it is moving in the right direction across the eurozone. absolutely. that is the point. if you are looking at a this year when qe was launched, it has been an improvement in terms of the trend. this morning, and europe, we got a setback in terms of core prices, which i think is temporary, but the trend is positive. the reason the ecb is pushing toward stimulus is they want

maximum insurance against any further disappointment in terms of inflation and there has been a lot lately. they want to make sure core prices move toward the target over the medium-term. alix: that is what i have been struggling with. look at the economic supplies index for the eurozone, things are looking up. inflation is weak, but it is picking up. why do they need to cut the deposit rate? why do they need to have such a large qe when the euro is already weak and the economy is getting better? frederik: that is a very good question indeed. i think there is an issue in terms of timing for the ecb. the ecb is moving before the fed this month and the ecb has been waiting for the fed to hike at least this year and in small steps by the end of this year. it hasn't happened this far and

the ecb is moving first and has decided to push toward more stimulus. there was a great article on bloomberg today. i agree with the title and conclusion which says mario draghi has become the new greatest risk manager in the world now that the fed is about to hike. they want to make sure this recovery in europe, however fragile, however imbalanced maybe, will continue into next year and strengthen. brought i like that you that up. given that the ecb has taken up that mental, does mario draghi have room to back out if he needs to? frederik: right now, given the excitement the ecb itself has contributed to create, i think it is quite difficult. again, they are moving first and before the fed. it is clear for the ecb that it is a difficult equation.

something more important has changed this year in terms of the ecb's approach and reaction function. whatever happens this month or in the next few quarters with , i think the ecb has grown more worried and wants to ensure every condition is in place for the recovery in europe to get stronger. that is why whatever happens in , i u.s. or emerging markets believe the ecb will continue to be bullish. aggressive, more nimble and moving that way. thank you for staying up very late with us. scarlet: we will be right back.

scarlet: i'm scarlet fu. "what'd you miss?" let's get to mark crumpton for the latest details on the mass shooting in san bernardino. there were unconfirmed reports earlier of as many as 20 people wounded at a shooting at a social services center in san bernardino. police are confirming an untold number of people have been killed in that shooting. searching said to be for a black sport-utility vehicle that fled the scene, according to the website of the "los angeles times." the san bernardino police department saying the shooting took place just afternoon at local time in southern california. according to the loma linda university medical center, at least for patients have been taken to it trauma center after that shooting. the social services facility

where the shooting took place that serves people with developmental disabilities. bse police sergeant told kc television that police were searching for more than one gunman. she did not have specific numbers on the number of dead or injured. detonateed a robot to what is called a device -- that is their word -- found inside the building according to sources who added investigators are assembling a battering ram to gain access to the office complex. today, the second mass shooting in the united states in less than a week. initial reports saying as many as 20 people were shot. police confirming there are fidelity's in that shooting at a social services center in san bernardino, california. -- there are fatalities in that shooting.

inmany as three gunmen connection with the shooting. stay with us. bloomberg's market a continues in just a moment. ♪

scarlet: "what'd you miss?" to mark. >> unknown vitality's following a shooting in san bernardino. one gunman opened fire at a social services center. as many as 20 people wounded. several law enforcement agencies converged on the scene. and they are said to be searching for multiple suspects. said he and his coworkers locked themselves in the offices after seeing the gunman. >> they locked themselves in her

office. they could see bodies on the floor. they saw ambulances taking people out in a stretchers. there are still people inside. >> triage units have been set up. some people wheeled away on gurney's after the gunfire conducted at the inland regional center. others walked quickly with their hands in the air and researched by officers before being reunited with loved ones. the facility serves people with developmental disabilities at riverside and its member -- and san bernardino counties. it has 25 employees as well as a library and conference center. president obama has been briefed on the shooting by his counterterrorism advisor lisa monaco. working to secure the scene at the scene 30 miles east of los

angeles. no arrest has been made. 23 suspects have been arrested and charged with smuggling thousands of migrants into europe. simultaneous police operations were held in greece, austria, sweden, and every. euro poll says the gang may have earned nearly $11 million by smuggling 100 migrants per day since operations started in 2013. the trial for one of the six police officers charged in the death of pretty great -- in the underwayfreddy gray is in maryland. they say they could have saved his life by putting dust by pushing a button on his uniform to: medic. -- to call a medic. details led to today's of writing and protested baltimore. sandy berger who helped craft clinton's foreign policy and later got in trouble for destroying classified document has died of cancer. president obama called mr.

berger one of the nation's foremost national security leaders and credited him with strengthening u.s. leadership in a uncertain world. sandy berger was 70 years old. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i'm the first word desk, mark crumpton. scarlet: let's get a quick recap on how u.s. markets closed. near the level of the day. so much for that december rally. stocks taking a big leg downwards after the speech. no real news out of janet yellen's comments. the fed is raised to boys -- poised to raise interest rates by december. you can attribute some of this to energy stocks. alix: that sector down over 2% in the s&p. we'll went below $40 a barrel. that is waiting on the market.

-- oil went below $40 a barrel. we didn't see production last week rise in the u.s., particularly in shale. there was an inventory overhang that was unexpected. that is permeating stocks today. scarlet: the setup into the 2016 meeting is a flattening treasury yield curve. this is the spread that people speak of. you will see that the premium offered over these to your notes is -- 2 year notes is narrowest over 2 months. janet yellen prepping investors for liftoff, saying that the flattening of the deal curve suggests that investors are taking yelling at her word. work.ng yellen at her if you max it out and go back to the 1970's, the curve is fairly elevated compared with the long-term average. 124 basis points versus 95 basis points on average going all the

way back to the 1976. alix: the reason why that curve is it so important, citigroup says if it changes we are in real trouble in the u.s.. we could see a global recession in 2016, a 65% probability of one here in the u.s.. part of that comes from the yield curve. is it winds up inverting, if short-term yields are higher than longer dated ones, that could mean that there is economic risk in the system. does that mean the unemployment rate also low that the fed has to hike faster than we think? therefore that yields to recessionary pressures. i really covered -- a somewhat bold call on the issue with the curve. scarlet: this is something people are looking at. it depends on your time horizon, whether you are looking at 10 months were fairly elevated if you are going to the 1970's. let's go over to brazil. we have been monitoring the headlines there.

the president facing impeachment proceedings in congress, according to the lower house speaker. the head of global emerging market strategy joins us now. jeff, this impeachment process could take months. not many people are surprised that it's happening, but it could drag out. what does this mean for her economic agenda? her focus would be on surviving. jeff: definitely on surviving. we are cautious about brazil. the reason for that is because of the very weak economy and the impact that is having on the budget process, leading to high yields and lower stock prices generally. how this process plays out will only have a real impact on the market over the long-term if it turns the economy around. they had a dreadful number on gdp earlier this week. our is the basis of waiting. the policies have to turn it around before investors will get interested in buying.

it did seem like investors were relatively optimistic. we cite -- we saw the real move up higher than the dollar. it seems like markets want this. what is your best guess if the president is actually impeached? jeff: the way it would continue to a stronger market is if the result of the impeachment, you ended up with more congressional agreements on fiscal measures to bring the budget deficit under control. i think that is what is going on here. there is clearly gridlock in the congress. that is very well known. that is contributing to these bad budget numbers. if you try and break gridlock over the long-term, that is where the more positive response is coming from. we are very skeptical until we see this happening. our concern is a weak economy, a not cheap stock market, a currency that still looks horrible to us, and frankly,

deteriorating fiscal accounts in brazil. scarlet: given all that, looking at emerging markets as a whole and how the fed is getting ready to raise interest rates, it seems like we have a well telegraphed interest rate increase. how much more room is therefore emerging markets to sell off? i know you are underweight in brazil, but what about the sector? jeff: overall we expect emerging markets to have a slightly better yield. we are looking for a cyclical bound-- so much of the hit because the dollar has been strong and commodity prices have come down. that will not be repeated to that extent next year. we strongly believe the fed had been priced into by emerging markets in mid-september, then we had a rally, now we fall back again. i think they are pricing the fed back in right now. therefore as the fed moves, which we expect -- what matters for the market is not if she moves or not. we know that it's going to

happen. what matters is what the expected rates will be afterwards. and if the fed is relatively doveish, which i bet they are going to be, i think em is perfectly well off the back of that. alix: to your point, if you look at the asia x japan hikes, they have bottomed one month before or after the rate hike and have rallied anywhere from 15-37%. that dis-redline at the bottom is where we are right now. could we see a 37% rally? jeff: no, we're not going to see that. i believe, and i have written this in research, that the fed is a bit of a sideshow. what is managing or the emerging markets. the gdp growth story and earnings growth story have been poor. i don't think you are going to get that scare. we had that from 2004-2006, but that was when em was 30%. i think you might well get some

cyclical response. they will be relatively doveish going forward. it only takes you so far until the early story improves. -- earning story improves. em might be up between 5-10% by the end of next year, but is not going to be 30-40% as far as we are concerned. alix: jeff, thanks so much. scarlet: we look at the current fundraising markets in private equity compared to years prior. ♪

♪ alix: "what'd you miss?" we have

seen a lot. oil price rout, macro hedge funds are closing, you name it. what does that mean for private equity? joining us is lisa would, head of markets-- i should point out my high school mate, we went to school together just a few years ago. so good to see you. i have not seen you in a most 20 years. scarlet: lisa, welcome. 2013 has seen a dip in fundraising after 2 years of the strongest capital raising since the financial crisis. why is that? lisa: we think this year is going to wind up being similar to the last two years. ishink a lot of capital raised in the final quarter of the year. what we have seen is a lot of capital falling back to clients. that capital is then reinvested in the markets. we are seeing a lot of trends of clients chasing performance.

we are seeing a lot of capital being raised with the top performers in the market. we think at the end of the day, private equity is one of those asset classes that you try to find innovative ways to put capital to work. agnostic of the amount of capital being raised. you still see the amount of deals being done. alix: what is your outlook for distributions next year? if you look at what they have done this year, they have fallen after having a banner couple of years. what does that end up looking like? lisa: i think it looks a lot like this year. what we have seen is the historical averages bump along. when you look at next year, we're looking at a similar trend to what we have seen this year. there is a lot of opportunities to exit good companies. we see that continue in the future, and that will happen for the remainder of this year as well. alix: still, a lot of

uncertainty in the market. a lot of p exits. how does that play into the distribution for the years to come? you can't overcome that kind of uncertainty. lisa: in this market there is a lot of uncertainty, right? what we have seen is the managers have made volatility their friend. there are those that ran away from it. what you are starting to see is the separation between those types of managers. those managers that really like the volatility are the ones that are taking more risk on the exit front, on the deal side. risk might not be the perfect word for that, or taking the opportunity leaning on this chances. alix: what is the easiest sell right now for investors? lisa: i think investors right now are looking at whether it be different industries -- health care, energy, where is the consumer today? because of depressed energy prices, consumers have a lot of disposable income.

where are they going to put that to work? investors are looking at how they can put that to work in a different sectors of the market, around the world, to think globally. alix: how does kkr set themselves to take advantage of that? how do you then position yourself? lisa: what we do is take a top-down and bottom-up approach. we have a deep macro team, we have views on the currency and different countries. whether it be the rising middle class in some of the emerging markets, whether it be the u.s. consumer domestically, whether it be the impact of the euro in exports out of europe. we look at all of those. from industries productive -- industry perspective, had we find businesses within those? whether it be investing in the retail space in the u.s., or recapitalize energy companies balance. all of those are interesting opportunities for us.

we look country by country and try to find those teams to invest behind. scarlet: talk about the power dynamic between pe firms and investors and how that is involved -- that has evolved since the financial crisis? to are you responding calls were increased disclosure? lisa: i think it is right. investors should have increased transparency on where their money is going. i think this is a trend where several brand-name private equity firms have taken a leadership role many years ago, long before this became a headline. evil started talking about. -- people started talking about it. we have made it clear to our clients where their money goes and comes from. at the end of the day, performance is what matters. yes, transparency is a big part to make but we want sure we are performing. when managers embrace

transparency, they tend to be the more is dictated and institutionalized managers -- the more sophisticated and institutionalized managers. alix: lisa wood, we will have you when we return. we are going to talk about women in private equity. ♪

alix: gender inequality is a problem in most industries. tech companies are trying to woo women by offering extended maternity leave. lisa wood, head of private markets products is back with us. for kkr, we seen the percentage of women in the workforce grow by about 7% over the past few

years, the doubt a lot of -- the out a lot of competitors. why? lisa: one, it was very different. there were a lot less women, not just at krr, but in private equities as a whole. why you are starting to see that trend happen is firms like ours are making a concerted effort to find those women. i think everyone understands and is the study shows that diversity of thought leads to better results. you get better performance when you have more people with different opinions around the table. you come to better understandings of topics. from our standpoint, the traditional resource spaces, whether it be investment banks were consulting firms -- they just don't have a lot of women. where are the women? you need to go to different places to go find them. for instance, this friday we are hosting a diversity day. we have going up to the leading business schools around the country and are asking him to send us their best and brightest

to come learn about kkr and private equity. we never would have done that before. law firms, industries going to corporate. those are areas where we have historically never recruited from. you were starting to see different results because you are doing different things. keep doing the same thing over and over again it's hard to expect a different outcome. that is what we have realized in the industry. scarlet: you talk about high diversity leads to better performance. to investors care about diversities at p[e firms, or only focused on the performance metric? alisa: they care a lot. when you look at a typical investor, it's a lot of pension funds. those pension funds tsit there and say, i want to focus on investing with to be representative of the constituents spaces at the capital is coming from. yes, they want returns. we talked about how performance really matters. they also want to make sure that you have the right people sitting around the table and making those decisions. alix: part of the issue for

women in any kind of workforce is having kids. that pushes a lot of women out of the workforce. kkr is doing something a lot of other companies are not doing. apollo also has 7% increase in women hiring. what kind of specific policy changes have you noted that have helped? alisa: i think this issue, whether it be children, work life balance, the ones that women get branded with is not a women's issue, it's a parent issue. what kkr in particular has done, and i think we have been groundbreaking in this area, is we increased the primary caregiver leave. it's not just women, it's both sexes. from 14 weeks to 16 weeks. we've now allowed for a travel policy where you can take your newborn as well as your caregiver around the world with you if you need to travel for work. that allows women to one, stay in the workforce, but it also

allows you to retain and promote some of your best talent. scarlet: in terms of competition for women, we've seen a lot of aggressive policy in silicon valley and places like google and microsoft. are you competing for the same type of talent? alisa: yes and no. we are trying to find the best talent in the industry. some may sit in silicon valley, some may not. what we are trying to find are the women that want to be in private equity, who like what we are doing and can find the right cultural fit in a firm like ours. they can both be successful and be a mother. you should not have to choose between the two. you can be good at both. scarlet: what used see in terms -- what do you see in terms of the next private equity firm leader being a woman? alisa: i hope as an industry we see that. i think biggest trend our new startups of private equity firms spinning out of larger firms.

some of those new initiatives being led by women. i think will be interesting is one of the established firms being run by a woman rather than a woman having to spin out to do it. that's something that we as an industry are looking for. alix: we were talking earlier about what fundraising is like right now. what kind of returns you think private equity one have over the next few years? are the 20-30% returns dead in the water? --sa: i have not returns -- i have thought about returns -- i think we will continue to see that. alix: such a pleasure to have you. great to see you again, alisa w ood, head of kkr. you are looking at san bernardino california. we want to listen in on the

updates on the situation. i will make couple of quick introductions. we have the chief of the san bernardino these department standing to my right. sheriff john mcmahon to my left. the assistant director in charge of the l.a. office of the fbi. that, i landed over to the chief. >> good afternoon, everybody. this originally started off at 11:00 this morning. we received a call at the inland regional center, 1400 block of the shooting. it was quickly apparent that we had what amounted to an active shooter situation. there was a massive initial response that was officers from our department, and as word spread through the region, we

had a mutual aid response delivery -- through virtually every law-enforcement agency in the area. parole, a number of agencies responded. up toe have so far is three people had entered the building and opened fire on people inside the building. we do have some preliminary numbers upwards of 14 people that are dead. upwards of 40 people that are injured. -- 14 people that are injured. we think those are reliable, but keep in mind those are subject to change. the 14 that are wounded have been taken to various area hospitals. in addition to the law enforcement response, there was a massive medical aid response from the san bernardino fire department, of the fire department, as well as the american medical response. those officers initially arrived

on scene and went into active shooter protocol, they immediately entered the building in search of the suspects. initial information is that the suspects were potentially still inside of the building. it is a massive facility, employs several hundred people, and it's taken a long time to clear the building. i think we still have assets inside that are completing that clearing process. information that i think is the most reliable at this point is that the suspects have fled in a dark colored suv. we have no identification on who the suspects are. we don't not know the motive of the shooting at this time. with that, i will turn it over to the sheriff. >> thank you chief. we are working closely with the san bernardino please to permit and unified command as well as our federal partners to make sure that we have the resources we need to thoroughly

investigate this event. our officers working hand-in-hand with the san bernardino police department to search the building as the chief indicated that search is still ongoing stop because of the information that the suspect may have fled the area, we have also shut down and locked down the ports and local city and county buildings in the general area around san bernardino. we have an increased law enforcement presence and all caps off areas, including hospitals. we've been in contact with old district, and their school police chief to take care of the school side of things. we will do everything we can to keep the public safe. we have been in contact with the board of supervisors. they have pledged their full support and resources that they have to help solve this as well. we will work together to investigate this case once the scene is secure and work hand-in-hand with the city of

san bernardino as we do in other hope rafael advanced/ event.r high-profile i will now have the assistant director of the ei say a few words. -- of the fbi say a few words. >> the fbi is here with our state and local partners as well as those from the atf. we are here essentially to ensure that all the wounded are extracted and ultimately public safety is number one goal at this point. we will work as a law enforcement community to assure that we have done everything we can in our power to find, locate, and apprehend subjects. at this point, i know one of your questions is going to be -- is this a terrorist incident? we do not know if this is a terrorist incident. we start from the beginning, working with our local partners. we take the presumption that it may be, it may not be. we work hand-in-hand with them from beginning. if things change, we are here from the get-go. there are no s