>> good evening, from washington dc, while we watched the entire gop feels be at the ronald reagan building down the street from where i am here and our washington bureau. i had a chance to sit down with two of the candidate, john kasich and carly fiorina. updatewe get to that, an on the dominant story in this country and in politics today. that remains wednesday shooting in san bernardino, california. there is some more information

known about the suspects now. one is an american-born muslim who had possible connections to extremist. aere are reports about stockpile of explosives found in the couple's home allegedly. ae fbi is now treating it as counterterrorism investigation. president obama said this this morning from the oval office. president obama: this is now a b i investigation that's being done in cooperation and consultation with local law enforcement. it is possible that this was terrorist related, but we don't know. it's also possible that this was workplace related. so there's still ambiguity. to the terrort related, what does it mean for american politics?

john: on the front of the new york post there were some provocative covers, muslim killers on one, and the other, god isn't fixing this, referring to gun control. this could be a polarizing -- there's a lot of ugly rhetoric and a lot of conclusions that will really raise the temperature of the presidential race. very concerned with national security, all mentioned the incident, some with more specificity than others. listen to what chris christie told the group. >> that was a terrorist attack. [applause] to the president continues wring his hands and say we will see. dressed inolks tactical gear with semiautomatic weapons came there to do

something, and let's remember something, everybody. if a center for the developmentally disabled in san bernardino, california, can be a attack,or a terrorist then every place in america is a target for a terrorist attack. we need to come to grips with the idea that we are in the midst of the next world war. he maybe a little ahead of the known facts but he clearly is tapping into a range of emotions that a lot of people felt today. doubt about it, but i think it's irresponsible for him to make statements that boldly when he doesn't have access to informationative certainly has no better information than the president does. let's move on to talk about that jewish forum.

each candidate spoke for a half hour. for the most part they talked about how much they love israel. group backed by -- first let's talk about donald trump, who even more than usual put on quite a performance today. take a look. want yourmp: i don't money. i wonder support, but i don't want your money. by the way, i've won so many environmental awards. i've received so many awards from jewish groups, and they look at my wall, it's loaded up. but now the christians are catching up, i have to tell you. we are going to say bye bye, call us when you are ready. john kerry is probably the worst negotiator i have ever seen. he did not read "the art of the deal."

and obama definitely didn't read it. a lot of press back there, so i have to say everything exactly correct. radical islamic terrorism. we have a president that refuses to use the term. he refuses to say it. there is something going on with him that we don't know about. i just tell you that i'm going to win. [laughter] i am. i'm going to win. how are you, sam? good man. good man. very nice to see you. i know everybody in this audience. downn i at least pin you that jerusalem is the undivided capital of israel? i am leaving for israel in a short time. i know what you are saying.

who is the wiseguy? do me a favor. just relax, ok? mark, you were in the room during that tour de force of sorts. did you think donald trump's performance was good, or bad, or just huge? mark: these are sophisticated, republican donors. they have other favorites. he said so many things that were politically incorrect, that were little bit off key. but by the end, they applauded him, they received him well. i think he showed people a modulation of tone and substance that i think maybe softened the opposition that a lot of people in that room came in feeling. amazingstill find it that he continues to go back to making the not so veiled inferences, implications that

barack obama may not be an american. i find it kind of extraordinary that he does that. were people laughing with him or laughing at him mostly in the room? mark: there was some of both. titteringtutoring -- at him. was some loud hissing and booing, but overall, he went in, he leas on bloodied, and i think he did himself some good with this audience. john: ronald reagan popularized the so-called 11th commandment, thou shall not speak ill of any fellow republican. today they showed little respect for that particular admonition. next now it is forced deportation. we are literally going to round them up. does that sound familiar to you?

every one of them, including their american citizen children. that is the leader of the republican party. you are going to win an election with that kind of garbage? if the nominee of the republican party will not allow for an exception for rape and incensed, they will not win. and incest. >> i guess if you're inexperienced, you say i'm going to go anblow the place up. but when you are an executive and the commander-in-chief, your words are clear. this poor guy with low energy, it is sad. whose performance stood out to you as the most impressive mark: theerson who got the most buzz out of it was

chris christie. he was dispassionate, emotional. he told some of the stories about 9/11 that he has told in other the news. i think he did himself a lot of good. cruz of buzz about ted including at the event that was held earlier today honoring dick cheney that president bush was at. and i think marco rubio did well . i think those three are getting the most favorable buzz. although rubio in cruz had the most support in the room to begin with. the other person who did ok was jeb bush. they were playing to a pretty friendly crowd. it seems to me that just reading the room from this distance, just watching these things on video, it seemed that rubio, because of the nature of his would have found a

very welcome reception to that presentation that he made. i thought he presented very well and obviously chris christie, i have a lot of issues with a lot of the things he said, but in terms of just performance, he seemed very strong, again from watching it remote. kathryn: rubio did better when he was taking questions and when -- benreading his speech carson, a lot of people felt he was a little awkward and stilted but he had a more focused speech than he normally has on topics like this. john: in terms of just pure dollars, who is the likeliest one to have snagged big donors

, maybe threeubio quarters of the room was undecided but there was a lot of money in that room to be taken away. next, paul ryan's first big speech as speaker and his big idea for bringing house republicans together. we will be back in exactly 60 seconds. ♪

--mark: some are suggesting maybe the honeymoon

is coming to an end. paul ryan said his party has to be both specific and bold with the policies they propose if they want any chance of beating the democrats. >> it's natural for people to start thinking maybe they are onto something. maybe the way to win the debate is to play identity politics, maybe you slice and dice the electorate, demonize, polarize, turnout your voters and hope the rest stay home. i would say yes, it is possible that we could win that way, but to what end? we need a mandate from the people. if we want a mandate, then we need to offer ideas. if we want to offer ideas, they we need to actually have ideas. that's where the house republicans come in. for nextmber one goal

year is to put together a thelete alternative to left's agenda. you think about what paul ryan said today and how will it impact next year's presidential race? john: he knowledge that the republican party has suffered him a dearth of ideas for at least a decade, if not more, and for him to admit that candidly and say we have to fix that for ever going to be a governing majority is speaking the truth in a playing way. i don't think it will affect anything in terms of what happens next year. acknowledge that the time for legislating is pretty much over or will be over shortly in context of the presidential election. if he makes good on it in the long term, it could have an effect on the republican party's prospects. mark: i think whoever the , i think henominate

will play a big role in putting ideas forward and trying to get the party to adopt them and not deviate and evolve into just a circus of fighting out on the presidential trail. biggest problem for ryne is that he has a lot of ideas and they are not particularly popular. moving on, secretary of defense ash carter made a historic announcement today that the pentagon will officially open all its combat jobs to women, overturning a rule that restricted them from artillery. praised theton decision saying women in the armed forces have enabled to prove their heroism and abilities, and our official policy is catching up. how big a deal is this announcement for the pentagon today? this is why of the last

areas of discrimination in the military. sweeping of a broad set of social changes that the obama administration has brought related toe military gender and sexual orientation, and it's a big deal for women now who have equal opportunity, at least on paper. no doubt his story, there's no question about that. the military at one point was in the vanguard of social progress and change. it has fallen behind in this see so it is heartening to that it has caught back up to where we are in society, and as you say, knocked down the final barrier to full equality for women in its ranks. mark: we will be right back with carly fiorina, right after this word from our sponsors. ♪

mark: i caught up with presidential candidate carly fiorina. i started out by asking her about the recent shooting in san bernardino. i want to ask about the tragic event in california, and just your thoughts about it from a personal point of view, and from a public policy point of view. fiorina: i've been in that building and i've been many times to san bernardino. it is a community under stress in so many ways.

it is an unspeakable tragedy, and i cannot imagine the stress is community is going through right now. it appears more and more likely a terrorist is in their midst. early thoughts on things related to public policy that we need to take a look at in light of these events, or is it too early to say? carly fiorina: i think it would be helpful if our president islamicknowledge extremism and terrorism is a real threat in our homeland, instead of immediately talking about gun control. california is, after all, a state with some of the strictest gun-control laws in the country and that clearly didn't matter here. i think that would be helpful. mark: i want to ask about something that's process oriented. public policy and you brought in president obama and secretary clinton.

some would say that is an example of politicizing something. you've talked about being against political ties asian -- politicization of public events. why isn't your ansell -- your answer an example of that thing you decry? left-wingina: the politicize colorado immediately. when chris matthews that i was responsible for the shooting at planned parenthood. pointagain, i take your of what you're saying they did. but you invoke them. carly fiorina: you don't think islamic extremism is a public policy matter? it seems to me, if i understand, the into gave was every bit as politicizing and political as the ones you are criticizing them for.

carly fiorina: when the president of the united states, he is, after all, supposed to be the president for all of us. his immediate reaction is to call for a long sought after insteadic talking point of, for example, saying what he said today, we need to examine the tax, but it certainly looks like we need to be mindful. these are people who are building bombs. also now know that a neighbor said that she was afraid to call the police because she thought she might be targeted for racial profiling. people are becoming afraid to speak the truth. that is a public policy problem. you say someone is politicizing something, what is the definition of that? understand what i mean, but i don't inc. you would like -- i don't think you would like what i mean.

here would be an example. mark: give me an example. if you don't want to, or you can't. carly fiorina: when you castigate an entire party, that is politicizing. what do you find most interesting within the republican party? carly fiorina: what do we do to ensure we have all the information we need to track terrorists? should we return to the patriot act, or did we do the right thing? i think that mrs. the point. as somebody who has come from the technology industry, i can tell you that the technology has moved way beyond the patriot act. we have levels of encryption that did exist even two years ago. rather than having the typical, political conversation, isn't

this bill or this bill, we ought to be sitting down with private sector technology companies in this country and saying what is the state of the technology , whileand how can we protecting customers information, how can we make sure that law enforcement gets the information they need? that is not a conversation that is going on or not even a conversation that politicians think to have. but it is a conversation that we need to have. mark: you talk in general ways .bout a lot of issues i wonder if you plan between now and the iowa caucus to put out any more specifics in any areas and what they would be? fiorina: most everybody else as my campaign is more specific than anyone. i've been more specific about what we need to do to fight isis then virtually anyone else.

-- zero-based budgeting is pretty specific. there is a bill sitting in the house right now. mark: discuss an original idea of years that you developed. carly fiorina: does it have to be an original idea to be workable? i haven't seen a lot of original ideas. is allblem with politics these ideas have been around a long time. on the left and on the right. the problem is, for zero-basedes, budgeting has been around a long time and we have never done it because politicians don't want it to happen. zero-based exiting is a really base idea, you are right. it's not some brilliant invention. it says that the federal government will have to justify every dollar. maybe it isn't original, but it sure would work, and we need to

move to it. mark: i still believe she has not been very specific on domestic policy and that has been one of the things that has not allow her to keep the momentum she had going. john: also the prickly nest there on display -- prickly iness on display there, not good. mark: thanks to carly fiorina for sitting down with us. when we come back, what john casey told me about his chances of winning iowa, after this. ♪

earlier today i sat down with ohio governor john kasich and talked about israel,

vladimir putin, and other foreign-policy issues that are still dominating this presidential race. governor, thanks for joining us. what is the significance of this group? kasich: they are very involved, effective, strong, committed to israel. there are a lot of people there who are my friends who have supported me for many years. this is a really good group to speak to, and i enjoyed it very much. did you see a lot of differences in your party that how to deal with israel? don't think so. my vieon the israeli situation is there is no real silver bullet. it's a matter of trying to have stability, and that's where your policy should be directed. i've been speaking to groups like this for 30 years. mark: what are the arguments for and against the two state solution?

john casey: you have to start by making israel is secure. sometimes it does not work out very well for them, so you want to make sure they have security. you want to work with them, they are our friend and ally, but i would not push them beyond the point where they felt threatened. i just don't think that would be right, anymore than you should push her own family. president john kasich still favor a two state's solution? : i think sometimes we push them, and we do it publicly to the point where we begin to undermine them. that's not the right thing to do. mark: so you come into office and the israeli prime minister says i want to take steps to make israel more secure.

what would be on your suggestion list to do? what would your input be to that discussion, what do you think could be a -- could be done to make israel more secure right now? john casey: the iron dome seems to work very effectively. secondly, the assistance they why to be able to that's the concerns i have is the s 400 that the russians have now in syria. even though right now relations are not tense between russia and kindl, when you have those of air defense systems out there, it begins to weaken the ability of israel to protect itself should things turned the wrong way. tom friedman wrote that while vladimir putin may still popular home in some ways, his international gambits are not working out. syria is not really working out. do you agree with that? is he the offense or on the

defense? john kasich: i think he is on the offense. , which very much concerns me, to put this air defense system in their, has some significant indications for the region. i think the west has not been strong enough in supporting ukraine, in reassuring the baltics. finns are and the nervous. whenever we appear weak, on the other side, he appears menacing and strong. but i don't think we should panic. i think we need to take action to make it clear that we are not going tolerate this kind of activity in central europe. and in terms of what i believe in the middle east, as you know, i believe we should have a coalition to destroy isis and i've been saying that since last february. you've been making the

argument that you are the best national security candidate. some of your colleagues have been making that argument. where are the divisions within the party on policy on national security? don't think it's just on policy. i think there is an element of the need to reform the pentagon. i spent 18 years of my career understanding, but it's a little different than i'm going to go here or there. the situation is that that building needs to be significantly reform. part of the reason why it is not reform is because president don't look across the river and demand that it get fixed. if i were president, i would. mark: does that same us money and make us safer? take asich: it can weapon system and move it from a 20 year window into a five year window. it saves us money and gets our systems online better. i've actually had to cast votes

and participate in debates on where we should go. my philosophy is we go where we need to in our direct national security interest, that we take care of business and we come home. of experience in this. i'm not trying to belittle anybody else. the policies i was involved with, that speaks for itself. i have the most comprehensive program on national security. i just spoke here in washington and i will speak at the council on foreign relations. mark: one of the debates is between national security and civil liberties, those kinds of issues. where do you come down broadly on that debate? kasich: there is no question that this problem of encryption is putting us behind the eight ball.

we need to have an ability to determine that the people who are out there plotting, so we can disrupt their plots. i also think there has to be an authority can approve the need to do these kinds of efforts. at the same time, we have to use common sense. you have to have good human intelligence. is assue of encryption very serious issue that we have to deal with. there are many parts to that. it's not a simple solution, but we have to pull everybody together so we can hear when bad people are plotting so we can disrupt it. mark: do americans have to give up some civil liberties in the wake of 9/11? broad.sich: that is too it's not inconsistent with civil liberties to make sure if there is evidence that someone is

plotting something that you go to authorities to get the approval to do it. purposes.s both it allows us to gather the information at the same time without just willy-nilly invading the civil liberties of americans. mark: are you going to be a head soon? when will you go ahead in this race? you kasich: you know this, have stated this for some time. we will compete in iowa. we don't expect to win there, but we will do reasonably well. then we will go to new hampshire. it is ground games that deliver results. we are building out beyond hampshire into south carolina. inare on the ballot virginia, and we are not running out of money. people said he wasn't going to get in, was not going to get on the stage, and all these things are happening. mark: is it your gut that you will go ahead in the public polls?

john kasich: i'm not well known, as you know, and the national polls are not the issue. mark: on primary night are you going to shock everybody? : there's still 67 days to go and you will be apple to make a good assessment as to where we are pretty grounded and true to yourself. is there anything you have done in how your treating people are dealing with voters where you have done a midcourse direction? i don't think so. i feel pretty good about what i've done. mark: who is the last person you have yelled at? : i don't really yell at people. i have had a great time. we have a lot of fun as an organization. joke andrious, but we

kid. as i've traveled the country, i've met some incredible people who have just come out of nowhere to help me in big ways, and i appreciate virtually every moment of it. mark: he has a lot of faith in new hampshire as do chris christie and jeb bush. , until any ofsay the establishment candidates prove they can dominate and oppose donald trump, john kasich is in this. john: what was interesting to me about that interview, he is an impressive guy with an impressive record. there was something about his tenor and tone that suggested he didn't completely have the eye of the tiger. at the end, he talked about his campaign in the past tense. john: there was sort of a valid victory quality to that

interview. mark: earlier on, he is still animated. thinks he would be the best president. he thinks he has the temperament and experience and the act is to be the best president. now, you have to say that john kasich and jeb bush are at best, stalled, and that rubio and chris christie are the ones who are rising. john: totally interesting. i did find it interesting to say -- you were asking specifically with respect to voters if there were things where you had to do a reset. he's been consistent and his consistency has earned him not that much in the sense that he is stalled right now.

i wonder whether privately he is thinking i need to do something a little different. maybe he's going back to his original plan, even though that is not working as well as it might. mark: he was solid and good, but he did not light the room on fire with his talk the way chris christie did. he is running out of time. he has to change the dynamic of a new hampshire. john: it's not early anymore, it is getting late. your up next, brush up on yiddish. ♪

>> there is always as much sucking up as at a frat party with beer pong. the object of fawning and flattering is often donors such as the koch brothers. a lot of that happens behind the scenes. then there is the jewish community. today at the ronald reagan building, the toadying of rent -- public and candidates was on full display. it's a pandering pandemic. i may have the first all jewish cabinet in america. >> the state of israel is an extraordinary story in the history of the world. >> last year was the first time i had an opportunity to go to , and it was such an

incredible experience. >> my mother told me one time, she said johnny, when i was a very young man, she said johnny, if you want to look for a really good friend, get somebody who is jewish. because my like me daughter happens to be jewish, right? the only bad news, i cannot get her on saturday. i am a negotiator like you folks. i've devoted so much time in my life to israel. i was the grand marshal of the israeli day parade. congratulations to those republican candidate who have earned a spot on our segment today. the biggest panderer bear on israel and judaism? mark: some of them did it totally knowingly with a wink and a nod and a sense of humor. some were just straightforward

pandering. those were first-class panderers, i have to say. john: john kasich they're saying if you need someone to trust, find a jewish person. get away with it in that audience, but it was pretty funny. sayingnd donald trump you are just like me, you are great negotiators. it was quite some. -- quite something. butchered a lot of yiddish. we will be back in 60 seconds. ♪

there are still a lot of things we're all trying to understand about the shooting that took lace in san bernardino yesterday. ago at an event in dover, new hampshire, clinton said it's becoming clear that we are dealing with an act of terrorism. here to talk with us is paul barrett, a senior writer for andmberg business week author of a new york times bestseller. he also wrote a book about islam in america which puts you an incredible position to talk about two of the most burning issues of the moment. now me what we know right about the guns that were used yesterday and what implications that has.

paul: deborah were four guns, as , to ar-15 style military assault weapons, two handguns, relatively ordinary pistols, and crucially, a whole lot of ammunition. it's the proliferation of ammunition that actually makes an attack like this so deadly. one implication of this is that were going to hear, for better or worse, renew calls for bans on so-called assault weapons, semiautomatic large capacity rivals. john: i know you have strong views about the nature of the debate over gun control and that there is kind of an inherent, structural advantage that the pro-gun side has that goes beyond the fact that there is a second amendment. paul: right now the libertarian argument is very much in control. this,ou see an event like rather than it leading to an

overwhelming call for reform that can be backed up with political action in washington, you in-depth with people running out and buying more firearms out of fear that there's going to be regulation of firearms. the nra represents only a americans,ew of having outside influence. that's what i mean by structural imbalance in the debate. every time since sandy hook or even before that, 80% of the people in the country favor the kind of gun safety measures as the president and hillary clinton and the democrats want, stricter background checks. you would think that would be a structural advantage that the pro-gun or pro-regulation side would have. why is that not the case? paul: because you have certain red states, arkansas or louisiana, where you have key

members of the senate who are basically just afraid of provoking the nra in their own states. for that reason you cannot get to the supermajority you need to overcome a potential filibuster in the senate. that is the short answer to your question. john: president obama yesterday seemed increasingly beaten-down by watching these mass shootings happening again and again. sincehave been 1000 or so sandy hook. what do you read in terms of what has happened to his resolve on the issue where he is emotionally and politically? paul: the truth is he came into office without much resolve on this issue. the rahm emanuel approach of staying away from the gun issue altogether. int changed after sandy hook december 2012.

he really has never had a passion or determination to take the fight to the other side that would be necessary to rally the democrats. we certainly saw that in his comments today. he just looked exhausted when he was talking about it. wrote a booko about islam that came back in -- came out in 2007 and is still relevant today. the mixture here of mass it add up what does to the terms of health might change the debate and the current stalemate that we have? isl: the troubling aspect you see within the american muslim community, which traditionally, contrary to anyone's assumptions, has been relatively moderate minded, relatively assimilated. you're seeing of coursing through that community of some of the fundamentalist ideas that

we associate with islam overseas whether in the middle east or the slums of paris. we see those themes come to the united states and manifest in the ways like we have seen in san bernardino, that is a very intimidating prospect. for coming in. you should definitely buy his book, please do. up next, ben carson and the hamas divide, after these words from our sponsor. ♪

>> foreign policy can be

challenging. asked residential candidate ben carson who had some trouble pronouncing and extremists group known to most of us as hamas. -- as hamas. amas.carson: hamas, h a couple of times there i was hungry for some falafel. >> there will be a lot of campaign activity tomorrow and into the weekend in iowa. i will be on the ground and reporting from the des moines metroplex. until then, thanks for watching. sayonara. ♪

emily: i'm emily chang and this is "bloomberg west." central banks in the spotlight today, equities tumbling to a

two-week low with the s&p dropping after fed chair janet yellen signaled a rate hike may be imminent. mario draghi says the central bank will extend qe until at least march of next year. european equities had the worst days since the summer selloff and the euro rallied the most in six years following the announcement. authorities say the two attackers who killed 14 people thann bernardino had more 1600 bullets on them when they were shot by police. than 3000mbs and more rounds of ammunition were also found in their home. president obama ordered u.s. likes to be flown at half staff. he said it could be linked to terrorism but did not rule out that it was workplace related. defense secretary asked carter making a historic announcement today. armed services have until january 1 to submit plans for the change.