we are focused on fireworks on capitol hill as the fight between apple and the government continues.it help or hurt the relationship between silicon valley and washington? ♪ >> you are watching bloomberg west. let's check with the news. north korea's warfare potential is being strengthened by organized cyber attack capabilities. nhis is according to the ma nominated to lead the offensive and he described an offensive capability against kim jung un. a russianes after warplanes flew within 50 feet of a missile destroyer. of dollars thousands in supplies to ecuador, as they deal with tens of thousands of people displaced by a powerful earthquake that left more than 400 dead and 4000 injured. the united nations is holding its first session on global drug policy in nearly 20 years. prior to the start of the meeting, hundreds, including politicians and rock stars, wrote an open letter that said that the war on drugs failed. announced a victory speech to the communist party. he said that he would die soon and he encouraged them to help his ideas survive. he spoke as the government announced

. >>> the standoff between apple and the f.b.i.over a locked iphone ended with no clear precedence so congress is stepping in. they want input from law enforcement and tech representatives. they are striking a balance between privacy and the american people. >> the dispute between apple and the f.b.i. is on capitol hill where leaders are testifying on inscription after a standoff after a locked iphone with no legal precedence. there have been legislation solutions but others more cautious. >> we are relying on congress to pass legislation in a complex situation like this is a blunt instrument at best. >> law enforcement laying out their case saying that they need access to encrypted communications as part of ongoing investigations and tech companies are failing to comply with court orders. >> this is an essential discussion that must produce a meaningful dying allowing on how inscription poses significant barriers to law enforcement to do its jobs. >>> and tech leaders say software to security data will compromise personal safety a

. >>> looking ahead the encryption battle between apple and the fbi continues tomorrow. it the moves from the courtroom to congress. apple and fbi representatives will be testifying before the house, energy, and commerce committee addressing the debate over the use of encryption. >>> a big win for google today. rejected a challenge to the online book library to authors who believe it makes it harder to market their work. the justices let stand a lower court ruling in favor of the mountain view tech giant. >>> now to new details. a man who was beaten in san francisco by alameda county sheriffs deputies returned to court this morning. petrov faces federal weapons and drug charges. he entered a plea of not guilty to all accounts. petrov has been in custody since april 1st when the fbi arrested him in san francisco. >>> san francisco's annual 4/20 celebration is under way in the park. this comes after complaints after business owners who say gotten out of control from garbage to traffic jams to people using the park as an outdoor bathroom. the plan includes street closures a

we have to start with the standoff between apple and the fbi.oogle, facebook -- tech company cited with apple. reopened a divide between washington and silicon valley. how sustainable is it for tech companies to be at odds with their government? gen. alexander: everyone has a right to one opinion. what we have to do is we have to learn how to get our country back together. best of what we represent and put that on the table. when i look at the great capabilities coming out of the tech community, these are phenomenal, tremendous opportunities. look at your caves. the opportunities you have in -- foron, for medication medicine, for communication. there are tremendous vulnerabilities with it. forre outpacing the ability the policy community to keep up. i would not say slow down, but i would say because we have on so far so fast, how do we help the policy community keep up. this encryption issue is such a problem. communications had been encrypted the last decade, how would be will be different? gen. alexander: if you encrypt communications and the

. >>> developments in the one time showdown between apple and fbi. senators are drafting a bill that would make it a law to help break phone encryption. the bill would require companys to help the government get data without a warrant. no individual or company above the law. >>> still ahead, report find dc's circulator buses are dangerous, why are they taking passengers? >> washington dc is one of two places that gets a passing grade when it children should get an hour a day of moderate to intention activity. 150 minutes of physical education each week for students and 225 minutes, middle and high school students. washington dc and oregon meet the requirement. >> physical education has to be increased. it has to be viewed as important part of the daily curriculum. >> health experts say physical education keeps kids, their minds in good shape and in the classroom as well, many states allow students to substitute other classes for pe. pap >>> two men behind bars accused of attacking a 12-year-old multiple times in the tomae have been charged with rape,

. >> battle between apple and government in new york is over. the justice department withdrew its request to force apple to length to a drug case after someone came forward with a pass code to the device. that previously ended a legal fight to force apple to hack into the san bernardino shooters iphone in that case a third party was paid to unlock that smartphone. >> tappan zee bridge is going cashless after midnight and no longer to stop or slowdown at toll both booths to pay. instead collected using e-zpass and build a little bit later based on photographs of their license plates as well as their vehicle registration information. >> hamilton heights street dedicate to the fdny first after a american commissioner. >> robert unveiled today in special ceremony of west 155th lowery was the first joined fdny in 1941 when black segregated from others an helped form the society to promote diversity in the department before serving as fire commissioner from 1966 until 1973. >> and we pay tribute are to bob lowery and recognize that which he accomplish

. >> this comes, of course, amid a battle that had been going on between apple and the fbi over iphone encryption. let's get to evan perez. he has all the details. this comes from your sources. what are you hear being what new information the fbi has been able to obtain? >> reporter: well, john and kate, this is really data from the phone that the fbi was not able to get from the icloud and from other sources that they were doing before they went to apple to try to get help. if you remember, that led to this legal confrontation between the two sides that was only resolved when the fbi was able to hire some hackers, some private sector hackers, to be able to break into the phone. we don't know a lot about what exactly this new data is, but this is sort of the law enforcement way of rebutting what apple had long said, which was that there was nothing useful in this phone, that there was -- really this is only about setting a precedent for the fbi to be able to get apple to build a back door into its devices. we are told that this -- there were no big revelations. there's no indication of

we have $1 trillion or close to it between apple and facebook reporting again., i don't think are particularly high. i don't think the stock is going to move a heck of a lot one way or another, unless there is a meaningful downgrade. facebook, that stock rallied in january when they beat on the floor. and that's one that people want to keep in there. in the game here. >> apple is getting into the drifting around aimless levels that we've seen historically. one of the things that keeps it from the bottom falling out. you have ten-times earnings. you have a situation like that. there's not much that can happen to it at this point. a small pullback. facebook, if something bad came out of that, you could see a sharp move. >> that's at the prior peak. you're looking at the trade. we know it was a friday. >> which has failed. >> the qqq. they've gotten back to difficult levels and have backed away. the issue here, and we were playing one of these last week, microsoft. but these are bad moves. this is not like gentle sell-offs. definitive volumes. double and triple wit

emily: how do you see the hierarchy between apple music and spotify and tidal, like how does that play: so, you have terrestrial radio that is stronger than ever right now. this is another one that will not be a winner-take-all market. it is very, very complicated. the streaming market is going to be very, very competitive. emily: what about tidal? troy: i think the verdict is still out. i think the intent was fantastic. -- i want artists to own something. by the way, i would rather see something that is artist-owned, than something that is venture-backed. you know, so i think the statement was powerful. and you can't underestimate jay-z. emily: artists are now making the bulk of their money from live events and tours. right? do you foresee that changing? troy: there will be multiple revenue streams. i think we're going to see revenue streams that don't exist, right? emily: like? troy: ai and vr. like when artists can scale themselves by doing -- instead of having to go out and beat your body up by doing 120 shows over a four or five month time span or whatever when you can do 120 show

the battle between apple and the fbi put the balance between security and privacy in the spotlight. do those who run the security services think the boundary lies? sawyers,with sir john the former head of britain's secret intelligence service. >> the challenge is cyber security, which is one where there needs to be a common on what internationally is acceptable and what is clearly a threat to national security. we are at the very early stages of that. in the modern world, the most viable source of information is data. a greattent you are deal about communities or individuals threatening you. that open society, that we should be able to protect ourselves without people exploiting our openness. the presumption should be privacy, that we go about our lives free of surveillance. someone whoet worked for the security service who wants to have mass surveillance. that is a complete fiction generated by certain privacy advocates. it is also very dangerous to ,ave completely closed spaces completely private spaces, which are in penetrable, -- which are thatetrable, because creates massive op

. >>> a new bill could help avoid encryption fights like the one between apple and the feds. dianne feinstein wants to require tech companies to break encryption to help law enforcement if ordered to do so by a judge. >>> a new california primary poll says donald trump is leading the republican race in california with 39% of the gop voters and 32% with ted cruz. in the bay area the numbers for trump and cruz the same. kasich gets more support here. the candidates are trading fire in new york. cbs news' weijia jang on the democratic race taking a negative turn >>> reporter: hillary clinton hopped on a new york city subway thursday. clinton tried to shift attention away from bernie sanders' comment that she is not qualified to be president. >> i don't know why he is saying that, but i will take bernie sanders over donald trump or ted cruz anytime. >> reporter: sanders says clinton started the feud when she claimed he was not qualified. >> i'm not going to get beaten up. i'm not going to get lied about. >> reporter: the republican candidates are also locked in a war of words ove

the filing comes in the wake of a dramatic standoff between apple and the fbi over iphone encrypti different issue but one that was also focused on the tension between user privacy and government security. for "nightly business report" i'm eamon jabbers in washington. >>> avoiding security lines. from the airports to the ballpark. >>> i'm phil lebeau in denver. take me out to the ball game, just get me into the park quicker. that's fine as long as you're willing to use your fingerprint. that story next on "nightly business report." >>> 85 million more vehicles here in the u.s. could face a takata air bag recall. the nation's highway safety watch dog says that number is in addition to the nearly 29 million inflaters that are already slated for replacement. those air bag inflaters of course can explode with too much force and send shrapnel into drivers and passengers. this is already the largest automotive recall in our nation's history. >>> american airlines is joining a growing chorus of critics including a lot of passengers who say security lines at airports are too long. in a statement ame

. >>> the battle between apple and the fbi shifts to new york and to boston. late today a boston judge ordered apple to help law enforcement examine an iphone of an alleged gang member. in a separate case in new york the justice department says it will appeal a court ruling that blocked the government from enforcing apple to unlock an iphone as part of a drug case. yesterday fbi director james comey said the method used to open the iphone used by one of the san bernardino shooters will not work on other models. >>> uber will pay at least $10 million to settle allegations by california prosecutors that it misled passengers about the quality of its drivers' background checks. in 2014 prosecutors sued uber saying that the company's screening process was inferior to what taxi drivers had to undergo. earlier this year we reported on concerns surrounding those checks. >>> two cofounders of soul cycle have resigned from the boutique cycling chain. elizabeth cutler and julie rice will continue to serve on the board of directors. soul cycle filed for ipo last year and

remember a few weeks ago the beef between apple and the f.b.i.? the f.b.i.le to unlock the san bernardino terrorist's phone. the dispute was headed to federal because apple kept saying this -- >> we need to decide as a nation how much power the government should have over our data and over our privacy. we did not expect to be in this position, at odds with our own government, but we believe strongly that we have a responsibility to help you protect your data and protect your privacy, and we will not shrink from this responsibility. >> trevor: tim cook might as well have come out at the apple event and said, f.b.i., you can unlock our new iphone with just one finger. might as well have said that. apple wasn't backing down. so the whole thing was headed for a showdown. suddenly, monday, the phish canceled its genius bar appointment. >> the f.b.i. saying they may not need apple's help to unlock the phone. >> the federal government saying they may not need to take apple to court saying they believe they can hack into an iphone, something they said they could not

week, tuesday and wednesday, we're going to have $1 trillion, or close to it, in a market cap between apple and facebook reporting again. apple, i don't think expectations are particularly high and i don't think the stock will move a heck of a lot one way or the other unless there is a meaningful downgrade. facebook, that stock rallied 15.5% in late january when they beat on the q-4. that seems to be one that people really want to keep in the game here. >> i agree with you. apple is definitely getting into those sort of drifting around aimless levels that we've seen historically. one of the things that keeps it from having the bottom fall out is the fact that, you know, there is a lot of bad news pricing. you can see that in the valuations. trading ten times earnings. when you have a situation like that, there really isn't that much that can happen to it at this point. you can see a small pullback. facebook, if something bad came out of that, you could see a sharp move. >> technically it's right at the prior peak. it's something that's on your mind, dan, when you're looking at the trade. fr

. ♪ angie: the battle between apple and the fbi.l sorts of questions, what is excepted bowl and what is not -- what is acceptable and what is not? >> a challenge with cyber security, a lot of work to be done to establish a common approach internationally on what is acceptable cyber activity and what is clearly a threat to national security. we are at the very early stages and there is more work to be done. intelligence gathering, surveillance. by far the most valuable source of information is data. data can tell you a great deal about individuals who were threatening you. in an open society, we should be able to protect ourselves from people trying to exploit are our openness -- exploit very openness. the presumption should be privacy. the presumption is that we should go about our lives free of surveillance. it is also very dangerous to spaces,ompletely closed completely private spaces which are impenetrable. it may give people certain comforts. massive opportunities to the enemies of societies, whether they are criminals or terror

look only at the current kerfuffle between apple with its iphones and the fbi. the notion that you are going to give over control of the defense of your industry requires that you give up an awful lot of information that a lot of these companies do not want to give up. there was a bill passed last fall in the senate after years of wrangling that now has private industry willing to pass on information to the government but only after they have sanitized it. which takes some time. and the agency to which they're going to give it is the department of homeland security. which has no ability to defend them in any fashion. department of homeland security will further sanitize this information and then, presumably, pass it on to the nsa. we're dealing with a form of attack which happens in milliseconds, and yet the manner of responding is one that will take days, if not weeks. it's not a very good plan. >> host: cybersecurity's become kind of a big business, hasn't it? tom ridge is in it, keith al -- alexander is in it. >> guest: yep, yep. go ahead. say the nasty thing

and thele between apple fbi putting the balance between security and privacy in the spotlight.'s surveillance services think the boundary lies? we put that question to the former head of written's secret intelligence service, mi six. >> the challenge of cyber security, which is one where there is a lot of work to be done to establish a common approach internationally on what is acceptable cyber activity and what is clearly a threat to national security. we are at the very early stages of that. in terms of intelligence gathering and surveillance, in the modern world, by far the most viable source of information is data. great dealned your about communities or individuals that are threatening you. it is right that in an open that we should be able to protect ourselves from people trying to exploit our very openness to act as enemies of our societies. the presumption should be privacy. the presumption is we go about our lives free of surveillance. i have never met someone who works for the security service who wants mass surveillance. that is a complete fiction generated by certai

lisa: the tug-of-war between apple and the fbi over encryption is showing no signs of easing after monthsnts both sides testifying to a house subcommittee today. david: emily chang joins us from san francisco with more. hotlynot the most expected hearing on the hill. what did we hear from apple today? emily: this is the second time in a few weeks that apple has been on capitol hill testifying on this issue along with members of law enforcement. fbi startedrom the it off the sing they want to find a middle ground here. there are certain things they cannot accomplish without the help of a third-party. they were able to open the san bernardino shooter's phone. they say every situation is case-by-case, they are all different, you are dealing with different operating systems, different levels of encryption. said's general counsel strong encryption is a good thing, we need this to protect our customers, protect everyone from hackers, from malicious actors. it is a necessary thing, something that the government should support. there are still a lot of questions about apple strategy. apple said t

we are focused on fireworks on capitol hill as the fight between apple and the government continues.p or hurt the relationship between silicon valley and washington? ♪ emily: the long-running fight over encryption has moved from silicon valley to washington. the fbi defended its use to crack the identity of the san bernardino shooter. here is the general counsel as well. >> we have not provided source code to the chinese government. key that weave the threw away. we did not announce we were going to supply pascoe generation i code. three allegations, those allegations have no merit. emily: earlier, i talked to tim murphy and asked him whether he was sent right with what he heard. solid am not certain a conclusions. law enforcement made it clear they need a mechanism to track the bad guys whether they are terrorists who have acted on or are planning future attacks, child predators, kidnappers, murderers, who may have used computers or cell phones to send messages back and forth to collect child pornography, etc.. they have made it clear they need help and the tech community did not of

. >>> the legal fight between apple and the fbi over the terror smart firm has put an israeli tech firm into the spotlight. >> neither that security company nor the fbi are talking what could be a big break in a crucial investigation. oren liebermann is in tel aviv for us. >> reporter: four months after the san bernardino terror attack, the iphone 5 c remained a critical but inaccessible piece of evidence. an ugly legal battle between the fbi and apple suddenly ended when the fbi found a different way to get into the iphone. an israeli newspaper cite industry sources that the company that did the work is called celebrite. their offices are behind me. neither the fbi nor cellabright will comment. but they specialize in mobile device data extraction and description, phone hacking. and that's exactly what the fbi needed in this case. we reached out to cellabrite and the fbi repeatedly. they didn't return our calls and the fbi wouldn't comment. the fbi said only that they used a outside company. but the fbi signed a $200,000 contract with cellabrite the same day the fbi announced it had gai

it comes on the heels of the privacy battle between apple and the fbi. facebook's live video streaming is getting an overhaul. it will get its own shortcut on the phone mobile apps. there will be a change to the layout you see when you update your phones, and no more having to link to facebook messenger. notthan: hopefully you're messing with facebook and whatsapp on the road. time for a look at t jamie sullivan joining us now. : you don't have to think about what you're doing on the road. 270 heading northbound. we have more volume heading north than heading south, but no slowdowns. i do want to talk about maryland. 95, pretty good shape, no big issues. montgomery county, by them building. very heavy as you approach clara barton parkway. big picture, not too bad. volume heading towards national harbor from the 11th street bridge slowing. let's talk travel times in virginia. 395 just under 20 minutes from the 14th street bridge to springfield. to thehbound, slowing capital beltway. 66 leaving the parkway, 20 minutes. that is a look at traffic. no crashes

go to pouberlunch.cnbc.com to see more. >>> there are new develops in the ongoing legal battle between appleovernment. eamon javers has the latest. >> the fbi may have found a workarc into the access into that apple iphone that's been the certainly of this recent battle, but this issue is just not going away. sigh vance jr. sell they're looking to get into about 175 phones and said a quarter of the 670 phones that the daye's office and cyberunit have obtained during the course of their investigation are locked. they said recently the pace is accelerates one out of two phones is inaccessible to law enforcement as they say there is evidence crucial, and cy vance jr. asked to think about the victims. >> apple has said it's moved to this device devolved encryption to protect the customers. what i want to ask you is for apple to be as interested in protecting its customers who are the victims of crime, many of whom are represented by the groups here today. who at apple is going to speak for them? who at google is going to speak for them? >> just last week we saw microsoft sue the department of ju

david: i wonder what the legacy is between apple and the justice department with the justice departmentg it didn't need the cooperation from apple to unlock the iphone. what is the effect on that on the business of apple? >> apple is adda mant and protecting consumers' data. with all the services they will not go into that. it's an extension of that instruction and will keep the consumer as safe as possible from all the different entities. my perspective, pushing that. now obviously if apple phones can be hacked by other entities going forward -- i don't think the apple user that typically 90% of whom will go out there and purchase apple products will be significantly impacted by the various announcements. david: i appreciate the time today. activist fund seen by the u.s. government that it acquired in haley burton. we will have the lateest. ♪ david: this is "bloomberg markets." and looking at the biggest stories. the supreme court is turning wn appeals from wal-mart and was objecting to a judgment in favor of employees who are forced to work through lunch breaks. wells fargo is appeali

another tug in the tug-of-war between apple and the fbi over encryption. e cupertino company refusing once again to help investigators hack into a phone, reiterating its court case. the government's need to substantiate its need for apple's assistance alone -- provides more than sufficient grounds to deny the government's application. the judge sided with apple. what does this mean? in ais is the next round debate or fight which is going to go on for a long time. is fundamentally that this phone is running an older operating system than the one in the san bernadino case. if the government could hack into that one, why honor can they not hack into this one? exactly. why can they not get in? >> the one slight difference is 5s, and thephone one in san bernadino was a 5c. i'm no hacker. i do not know exactly what might be possible. potentially, that might be the fbi's defense. we do not know. and this iphone is involved in a drug deal or narcotics case? >> the individual at the heart of the deal, while it has not been close yet, has pled guilty. the argument of

. >>> a battle between apple and the f.b.i. have resumed in a courtroom.he justice department wants apple to unlock a iphone connected to a drug case in brooklyn. apple maintains that the government needs to get other methods first. the f.b.i. says the tool it used to unlock a phone in the san bernardino case works on a narrow range of iphones and not the newest models. lawyer says apple is opposing similar requests and to extract information in a dozen cases including some in california, massachusetts and new york. >>> an american freelance photographer held in syria for four years is released. 33-year-old kevin douse was freed after months of negotiations. from san diego and kidnapped in 2012. the syrian government eased restrictions. >> tom vacar reports on how it is spreading and how you can find it beginning tomorrow. >>> less than 20-year-old tree killing epidemic probably came from ornamental plants sold in nurseries. five oaks have been decimated. >> up to 70% of oaks are dead in the coastal forest. we are talking about tens of millions of trees. >

. >> reporter: the dispute between apple and the fbi is back on capitol hill where law enforcement and tech industry leaders are testifying on a hearing on encryption. some members of congress have been floating legislative solutions but others have been more cautious. >> we are calling on congress to pass legislation in a complex situation like this. a blunt instrument at best. >> reporter: law enforcement says they need access to these communications as part of ongoing communications and tech companies are not complies with legal court orders. >> encryption poses significant barriers to law enforcement's ability to do it job. >> reporter: but tech companies say this will compromise personal safety making americans more vulnerable. >> the issue is not about privacy at the expense of security. it is about maximizing safety and security. >> reporter: a proposed bill from richard burr and diane feins temperature insstein world force them to give information to the feds. >> we cannot battle between two sides. the only approach is that we all lose when we do that. >> reporter: it is unclea

. >>> new developments between apple and the fbi.ators are drafting a bill to make it a lot to help break phone encryption. the bill is backed by senators from both parties that would force companies to help the government get data from phones and computers without a warrant. supporters say no individual or company is above the law. >>> a manhunt is over for a violent mental health patient in washington state. 28-year-old murder suspect, anthony garber broke out of a mental facility and was captured in spokane, hiding under a pile of debris in the woods. >>> the boss is backing out of a trip to north carolina. bruce springsteen canceled concert in greensboro saying the bathroom gender law is an attempt to overturn progress. the show was going to be sunday at people who bought tickets will get refunds. >> two reports are out of public health, globally and nationally. the first from a global perspective, finds the number of adults with diabetes has reached 422 million, worldwide with increases in low and middle income countries. from 1

tim, this goes on, this continues, this big battle between apple and the fbi.government case been undercut by the revelation in california? that a correct terrorist phones -- it's cracked terrorist phones without the tech giant assistance? the we are still early in hearings, but some of the comments brought up the idea that do we really want the government reliant on third parties to do our investigative work as a country? the tone is a little different than a month ago when we were on the hill with apples to help lawyers. lawmakers atfrom the knees to be more compromise. you can't have one side winning this battle. at what am looking is testifying in front of the hearing, what she is saying. she is saying the fbi needs the industry's help to crack phones and also, that the government alone can't override encryption. that is essentially the stance we have heard from law enforcement officials as to why they want companies to help them with this. will they get much sympathy from the congressional -- from the lawmakers on this point? tim: the house committee marga

>> the fight between apple and the fbi has been settled, but the impact on your phone is not. mooar reports. >> reporter: it has washington lawmakers asking whether it's time to reconsider the balance between personal privacy and national security. >> the circumstances have changed and so, too, must the discussion. we can no longer be a battle between two sides and a choice between black and white. >> reporter: the devices and technology that have made our lives more convenient have made it easier than ever for criminals to hide behind an encrypted fire wall. >> the haystack >> we lack the point to properly execute the laws that congress has passed because the technology bypassed the law. >> that weakness was vividly demonstrated when the fbi tried to help apple unlock the iphone. the government succeeded with the help of third-party hackers. apple's top lawyer says the tech giant cannot give the government what it wants, a back door that opens on demand. >> we have no way of doing that without undermining and endangering the entire encryption infrastructure. >> reporter: a fin

. >>> i'm kristen wright at the live desk with the encryption battle between apple and the fbi taking

. >> it is peculiar how this conflict between apple and the fbi seemed to roll itself back very quicklyo limited. >> now here is a random question. how much does it cost us for this tool? was it expensive? >> to me, it has the feel of like a gentleman's agreement. the director said this wasj like-minded -- didn't say intelligence service but entity so this says to me it was one of those. >> get it for a dollar. just tell us. >> all this gamesmanship that they play. tell us. the terrorists know this and our enemies know it but we our enemies know it but we don't. know. >> make me really dig for it? >> catherine, thank you. did you a good job. college freshman murdered, her body abandoned in a creek in the hunt for the suspect is on. a live report is next. and don't forget to watch sean hannity tonight 10:00 p.m. eastern. herman cain joins sean tonight at 10 o'clock p.m. on hannity. >>> another horrific murder, this time the university of texas campus. police in austin are now searching for this suspect in the brutal murder of an 18-year-old freshman. the murdered freshman was found in a

jon: the fight between apple and the u.s. government is far from over. the clash continues. nt announced plans .o sue the company apple maintains it stands that unlocking phones will be a chilling attack on privacy. for the people who thought this was over, it is not. >> not even close. but only is there a phone in brooklyn, there is one in massachusetts. the government still wants to that theyhese iphones feel are essential to fighting kerry cases. each one is slightly different from a slightly different flavor. wantedbernardino, they to get past the security system. in brooklyn, it is a very simple matter, the government says they can do in minutes. take us into the motivation of the parties. this is not a terrorist attack, this is a drug dealer. top trying to take this up so it goes nationwide? > >> they are telling us they are not trying to set a precedent. in boston, it is a gangster case. it is likely the judge, which is in brooklyn, that previously ruled against the government, may rule again. there will be appeals further up , and maybe some kind of president will be

the recent encryption fight is over between apple and the fbi, but as nbc's brian mooar reports, your phone could still be impacted. >> reporter: the battle over unlocking one terrorist's iphone is over, but it has washington lawmakers asking whether it's between personal privacy and national security. >> the circumstances have changed and so, too, must the discussion. we can no longer be a battle between two sides, a choice between black and white. >> the devices in technology that have made our lives more convenient have made it easier than ever for criminals toed my behind an encrypted fire wall. >> the hay stack has gotten bigger, but we're still looking for the same needle. >> we lack the ability to properly execute the laws congress has passed because the technology bypassed the law. >> the fbi tried to force apple trying to unlock the iphone of san bernardino terrorist syed farooq. the government succeeded with the help of third-party hackers. apple's top lawyers say the tech giant cannot give the government what it wants, a back door that opens on demand. >> we have no way of

the filing coming in the wake of the dramatic standoff between apple and the fbi over encryption. for cnbc business news, i'm eamon javers in washington. >>> well, blackrock has posted a 20% drop in first quarter profits as it struggled with the sharp pullback in financial markets. the ceo and chairman larry fink told cnbc how performance fees contributed to the miss. >> one area that dragged earnings that we had in terms of our hedge funds, we had performance fee reductions. so that's the biggest. the street was anticipating higher performance fees. that's where the miss was. >> and u.s. banking stocks posted their fifth consecutive day of gains yesterday after a torrid start to the year with earnings from the big names turning performance around for the sector. financials had been the worst performer this year. wilfred has been looking closer at the financials. a whole bunch of them reporting this week, wilfred. >> that's absolutely right, louisa. it's driven share price performance, as you've just said. the three main takeaways from the banks we've heard from so far. first up,

whatsapp has strengthened its encryption settings as the face-off between apple and the fbi spurs tech companies to rethink approaches to safeguarding customer data. whatsapp messages will only be available to the sender and recipient. staying in tech, financial disruption is a buzz word at the money 2020 fintech conference in copenhagen with social trading company itoro making strides. nancy spoke to the firm's ceo and asked about the innovation taking place in the banking space. >> i definitely see a lot of the big banks in europe, starting with commerce bank, whose venture arm invested in etoro. so that's one of the largest banks in germany. you see sort of a very refreshing breeze of people understanding you have to innovate or die. sort of that statement of the silicon valley has now entered europe, into the financial services. they understand that they need to innovate or other banks who simply innovate or partner with etoro are going to come for their lurch. >> well, nancy is still in copenhagen and has been following the moving trends out of fintech. >> reporter: that's right,

. >>> i'm kristen wright at the live desk with the encryption battle between apple and the fbi taking place right now on capitol hill. >>> news 4 midday >>> and developing right now, an investigation is underway into a police shooting. a greenbelt officer shot and killed a man on springhill court. news 4's mollett green is live at the scene and she can tell us more. >> reporter: this investigation still very much active. police still here on the scene. there's a large amount of space blocked off by the police tape. you can see the cruiser behind the tape. now, greenbelt police have not released the man's name or any details about why he allegedly fired a gun. we've learned from neighbors the man lived in the third floor unit less than six months. >> i heard gunshots -- >> reporter: a police-involved shooting late last night. this morning investigators collect evidence from this balcony behind the yellow police tape a greenbelt police car with a bullet hole in the windshield. >> you could be walking past at that time that he was shooting and been >> reporter: that's what brought police

. >>> encryption battle between fbi and apple. department of justice withdraws request for apple to reveal that a from cell phones linked to in new york drug case. someone provided the pasco to the iphone and authorities asked the judge to order apple to cooperate. >>> president obama visiting england. during his last speech the president took the opportunity to talk about things he's proud of the, pushing mentioning the expansion of health care for everyone saving the world from economic crisis and iran deal and he said he would like to improve early childhood education next. >>> campaign 2016, candidates looking ahead at the next round of primaries. voters head to polls in pennsylvania, connecticut, delaware, rhode island and marilyn tuesday. some candidates are changing their talent attempting no lines of attack on opponents. >>> ted cruz is trying to drive home the message that donald trump is a liar. >> i will not -- he will not build the wall or deport anyone , he's telling us he is lying to us. >> trumps convention manager

. >> cruz spent his day between the big apple in the next big contest , marilyn. 95 delegates are up for grabs here. the way it all works is that each district can give out delegates but a kennedy has to win 50% or more in gain the support. the remaining 14 delegates will go to the states winter. we will see. donald trump is expected to vote around 9:30 p.m. . it's a very complicated and tricky process. >> think you, teresa. the balance of power could shift as voters decide who will replace two former lawmakers convicted of corruption. voters on the lower east side choosing replacements for that man there.>> sheldon solomon. he is a democrat. long island voters decide on dean scully. visible seats only serve out the remainder of the return and in the fall they >> if you have problems, report for a special hot line. eric snyderman announced he has a hot line staff i attorneys in the civil rights bureau. 107 71 , 7755. >> peter liang learns his fate after killing a car regularly in a brooklyn housing complex stairwell. it was back in 2014. he is facing up to 15 years in prison. brookly

. >>> the ballots between the fbi and apple over unlocking the san bernardino killer's iphone may beight over encryption has just been dramatically ramped up. >> the online messaging service whatsapp has over a billion users added end-to-end encryption on messages and phone calls and videos. "wire" magazine got an exclusive interview with the editors and jason is here to tell us more. these guys don't talk very often so this is a big deal to have them talking about what they view as the future. first off, what is end-to-end encryption? >> if i'm sending you a message with end-to-end encryption the only way you can decipher that message if y specific phone. nobody can tap into it while it's being sent. most importantly, the company that is hosting this app has no record of it either. >> now apple has that as well. how if at all does this differ? >> the difference is whatsapp is huge. we don't use it in the united states and has a billion users. apple's imessage can only send it between apple users and nowhere close cloes to a billto >> icloud. >> if you use icloud, that immediate amel