they are all gathering in san francisco at the rsa conference.ll be talking with the assistant u.s. attorney general. that's john carlin next, on bloomberg markets. ♪ than an hour,e the fbi director and apple's top lawyer will testify in front of the house judiciary committee over encryption and privacy. favor ofuled in the text giant over a request to unlock the iphone. tim joins us live. see apple try to frame the debate as, should the government prohibit them from making devices to protect your personal data? vonnie: we had developments. a judge has ruled in favor of apple in a similar case. i'm not sure the fbi would call it a similar case. thet is definitely a win in public relations category. the court fight is separate from what's going on today. this is about framing the national debate on privacy. vonnie: what will apple attempt to do in front of the house judiciary committee? win overill try to independent minded lawmakers who have not decided where they fit on this issue. vonnie: have you been talking to congresspeople on capitol hill?

attorney loretta lynch will be in the bay area speaking tomorrow afternoon at the rsa conference. reporting live, scott budman. >> thank you, scott. >>> uber and lift drivers may soon have to submit their fingerprints. the state's public utility commission say it may be mandatory. the goal is to better ensure the safety of customers. uber has been under fire because uber stander background checks only go back seven years and don't normally include fingerprints. the cpuc will consider that proposal at the march 17th meeting. >>> the coverup at yosemite begins at midnight. workers will cover up with temp tarry directions. this is the latest move in the battle legal battle over the names of some of yosemite's landmarks. the vendor claims it has trademark ownership of the hotel and curry village among other locations. the vendovendor's contract expi admit night. employees will cover up the existing road signs with temporary signs until the lawsuit is settled. >>> going to be very confusing for old-time visitors to yosemite, for sure. let's turn things over to jeff ranie ranieri. >> we

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the secretary of defense is here in san francisco this week for the rsa cyber security conference.doing a bit of a good will tour here meeting with a lot of the top silicon valley executives and in a speech last night he touched on the apple versus fbi controversy saying he couldn't weigh in because of on going litigation but he did say this. the right way is partnership. it's easy to see the wrong ways to do this. one would be a law hastly written in anger or grief. another would be to have the rules written by russia or china. so trying to find a middle ground. he'll be speaking at the rsa cyber security conference here in san francisco later on this afternoon and at 4:00 p.m. eastern i'll be interviewing him live on cnbc and we'll ask him about the controversy over apple. also about cyber security and the relationship between the u.s. government and silicon valley which is under so much strain as you know guys. one little announcement made earlier this morning they're opening up the pentagon to hackers. opening up a hack the pentagon bounty contest for people that want to try to

the democrats are say, as many more people rsas we can. the republicans are say, we need to secure the border, redeuce immigration in terms of people illegal immigrating. trump is right on that it's forced people like me to say let's have a prosofse reform and a process of dealing with this issue. clarence: we had a process of reform moving toward comprehensive immigration reform and what happened? it fell apart due to republican opposition. now they want to close the borders off and kick out the undocumented. what about the economies in places like california which are tied very closely with, as we say, undocumented workers out there. new york's economy and other places. this tends to be a regional issue. what's being argued is not really the culture, pat. it's economics. who is going to pick the fruit, pick the vegetables? pat: what eleanor said, did the president of the united states mine, have the authority and right to do what he did? we didn't -- the court decides that, did he? but i'll tell you this your argument, or my argument and

. >> reporter: the bring comes at the big rsa cyber security conference gets underway in san francisco. a federal judge in new york handed apple a big way relieve the government cannot force the tech company to hack unlocked iphone that was in a drug case. the decision could affect the price dispute with the fbi of the san bernardino shooter iphone. >>> coming up the hill you won't believe. a toddler getting into trouble when he slips out the back of his grandfather's nothing can. >> a second difficult day of testimony for sports reporter erin andrews. >>> every insurance policy has a number. but not every insurance company understands the life for those who've served and the families that have supported them, we offer our best service in return. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members >>> caught on camera. a two-year-old child falling out of the trunk of a van and onto a busy street in china. the driver of the vehicle and his grandfather did not notice and kept driving. luckily the car behind them pulled over and pick up the boy and

. --- la conferencia de la compaÑa "rsa", tendr lugar esta semana en san francisco... --- el tema quein ser la batalla legal entre apple y el fbi... --- una orden judicial exige a la empresa tecnolgica crear un sistema para ingresar al iphone de uno de los autores de la masacre en san bernardino... --- hoy se espera que apple comparezca ante el congreso para testificar sobre el caso... lorena-take vo --- la corte suprema de justicia rechaz una impugnacin legal en contra de la ley de viviendas asequibles en san jos... dejando intacto el esfuerzo de la ciudad para hacerle frente a los exhorbitantes precios de las viviendas en silicon valley... --- el tribunal supremo declin escuchar la apelacin de la industria de construccin que argumenta que esta ley y otras en todo de california violan protecciones federales en contra de la propiedad privada... --- la ley requerira que las constructoras incluyan en los proyectos habitacionales, viviendas para residentes de bajos ingresos... juanfra vo ---el presidente obama tendr una reunion cara a cara en la casa blanca con lideres republicanos del s

. >> reporter: meanwhile, san francisco's rsa security conference, the u.s. attorney general said apple should not have the final say but also sounded a note of compromise. >> i know, from my conversations, that neither our technology companies nor their leaders have any sympathy for the terrorists and criminals who target americans. >> and now we're all learning about cyber security and encryption and a little bit about the law and how the government can pursue certain things. >> reporter: now, south bay congresswoman zoe lofgren who has come out in favor of apple, said that even if they were able to get into the iphone, users would be able to communicate with new encrypted apps outside of the government's control. back to you. >> scott, thank you. >>> here's a question, are you on the list? the richest of the rich. a bay area billionaire has a reason to smile. facebook boss mark zuckerberg had the most profitable year of all billionaires. the 31-year-old palo alto resident added more than $11 billion to his fortune. that moves him from 16th to 6th on that f

is anything safe anymore, chief technology officer at rsa. good to have you with us. make of the latest, especially this targeting of apple mac users? >> for the longest time people thought apple were like hallowed groubd. it is as vulnerable as anything else. as the market share increases, we can expect to see a commence surratt increase in the types of attacks on apple device. >> like microsoft attacks or windows attacks that might common place a decade ago. >> it makes business senz r sense for the attacker, part of a cyber criminal enterprise rather than a legitimate one. we can't take anything for granted, we have to think about how we protect ourselves and how do we respond and gain visibility. that's what we focus on at rsa. >> i wonder whether this means -- remember back when this became such a big problem for pc and had you to down also load, buy the little disks and run the checks all the time. >> you have that one kinds of distributed responsibility for figuring this out with consumers and individual pc owners but then you have another storyline it was beco

>> reporter: the debate over unbreakable encryption landed in san francisco at the rsa conference with some of the greatest minds in compute security with the biggest names in the federal government. when you get them together you'll find differences of opinion. >> but the main thing we have to have for innovation is a conversation. >> if the attorney general thought she's having that conversation, she's mistaken. >> i understand the attorney general's opinion. i think most of us here do not agree with her. >> apple decided to make products that serve customers. >> the fbi versus apple. security versus privacy. >> the fbi is asking for what is inappropriate. >> the head of the nsa took the stage. >> we want to operate in a broad partnership, not in a vacuum over on east coast, just sitting there saying to you "trust us". >> reporter: the attorney general argues not working together gives too much power to apple. >> do we let one company decide this issue for all of us? >> reporter: tech companies are designing tougher security using computing to generate true random numbers for unbreak

>> reporter: the debate over unbreakable encryption landed in san francisco at the rsa conference withsome of the greatest minds in compute security with the biggest names in the federal government. when you get them together you'll find differences of opinion. >> but the main thing we have to have for innovation is a conversation. >> if the attorney general

the debate over privacy rages from capitol hill to the rsa conference right here in san francisco.itting individual privacy against national security. at the heart of the current debate, how much does encryption hinder law enforcement? former u.s. secretary of , michaelsecurity chertoff. co-author of the usa patriot act. been very public about its use on encryption. how much does apple compared to the rest of silicon valley? are all of these other tech companies taking as aggressive a stance? chertoff: a number of companies and after we filed briefs in support of apple in this case. been has traditionally focusing more on security and encryption of data rather than a business model that involves looking at the data and using it for marketing purposes. all the tech companies are in the same boat. not just a question of privacy that question of security. if you force people to create backdoors. you are creating security vulnerabilities that are going to hurt innocent people. : you have a new white paper out about the impact of encryption on law enforcement. the argumentake of that ph

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emily: mike brown giving the keynote at the rsa conference later this week. for joining us. apple executives are holding a conference call after a judge in brooklyn back to the company ruling apple does not have to help unlock a drug dealer's iphone. a senior apple executive says it is not a binding precedent but they believe that it may be persuasive in the upcoming case in san bernardino. vonage's bet on enterprise tech seems to be paying off. why they are targeting cloud-based medications. in a very special birthday today. we will tell you later in the show. ♪ emily: a vote of confidence in alibaba's stock buyback. jack ma and joe psy are spending $500 million of their own money to buy shares. until now we did not know how much they would spend. the stock has fallen about 20% in the last year as it grapples with slowing growth. turning to cloud-based communication. last year vonage shifted focus to business customers away from its consumer strategy and the move is paying off. the copy released earnings numbers earlier this month and they beat analyst estim

what are things like an rsa with apple lurking in the background?yone in operations is here. you can imagine that to the apple case has dominated the conversation. scarlet: what is the common comment you have heard? commander allen: security and privacy are two sides of the same coin. they are connected and they cannot be disenfranchised from each other. these issues are very nuanced. they have strong compelling arguments on both sides. i think there is a general agreement that probably the last place you want to try to solve this is on capitol hill or the courts. you need a measure of trust between industry, the government, former governing officials, and those officials are going on right now. these things have to be resolved by the people who are the competency to fix it. has to be between apple and tech. commander allen: in my view, we need a common ground to have this conversation in. there's a number of people who are working on it. the equilibrium project discussed here on thursday, the chertoff group has put out a on basically the history of

>> reporter: the debate over unbreakable encryption landed in san francisco at the rsa conference with some of the greatest minds in compute security with the biggest names in the federal government. when you get them together you'll find differences of opinion. >> but the main thing we have to have for innovation is a conversation. >> if the attorney general thought she's having that conversation, she's mistaken. >> i understand the attorney general's opinion. i think most of us here do not agree with her. >> apple decided to make products that serve customers. >> the fbi versus apple. security versus privacy. >> the fbi is asking for what is inappropriate. >> the head of the nsa took the stage. >> we want to operate in a broad partnership, not in a vacuum over on east coast, just sitting there saying to you "trust us". >> reporter: the attorney general argues not working together gives too much power to apple. >> do we let one company decide this issue for all of us? >> reporter: tech companies are designing tougher security using computing to generate true random numbers for unbreak

scarlet: emily chang as of the rsa conference in san francisco. she is joined now by u.s. attorney general loretta lynch. emily: thank you for being here. i want to welcome our listeners from bloomberg radio. you say there is a middle ground between apple and the fbi, and i was wondering if there is a middle ground, where is it? >> we see the middle ground and anyw enforcement company goes to the court stood arbitrate the disputes as to what the law means or what compliance means or whether someone should comply, we go to court. case, a we did in this and that's what we think is the current state of affairs and where this will play out. however, it is also the middle ground of the larger form of ideas in our country. having a discussion about what it means to have both privacy and security. we do it all the time. we can do it in this case also. judge justbrooklyn roll that apple does not have to do this in a separate case. yourthat undermine argument or change your strategy? >> know it does not change our strategy or reliance on the court. with thatappointed decision, but

. >> tomorrow at the rsa cyber security conference you will announce that the u.s. and u.k. have begun negotiations that would allow the british government to subpoena american companies for data relevant to investigations there. even if the individuals involved are not american or that the crime happened on u.s. soil. so how would the u.s. benefit from that? >> american companies do business all over the world as they should. they're in a situation where there are vulnerabilities there. we're talking to the u.k. and we are. this is a case where, this case would be a situation where the u.k. was investigating a crime in the u.k. involving its own citizens, but because electronic evidence is such a part of every case, whether it's here or overseas, the data if an american company was involved, would be stored here. what we're talking to the u.k. about, is trying to find a way to come up with a solution to help u.s. companies comply with the british order, right now, american law says they cannot send that data overseas. because they operate in the u.k., they're subject to u.k

the debate over privacy rages, first, from capitol hill to the rsa conference right here in san francisco, pitting individual privacy against national security, striking at the heart of the current debate. how much does encryption hinder law enforcement? joining me now in the studio former u.s. secretary of , homeland security, michael chertoff. also co-author of the usa patriot act. thank you. it's great to have you here on the show. first of all, look. apple has been very public about its views on encryption. how much does apple compared to the rest of silicon valley? are all of these other tech companies taking as aggressive a stance? because it doesn't seem like they are. michael chertoff: a number of companies have filed briefs in support of apple in the case. apple is the first one that got caught up in the battle in a court context. apple has traditionally been focused more on security and encryption of data that it holds, rather than a business model that involves looking at the data and using it for marketing or other purposes. but i think basically all the , tech companies are i

busy at this time of the week, at this time of the day, especially for that rsa security conference. right now shut down in the area ofs moscone center of the w hotel. you can expect some significant backups and delays. we do have calls to the san francisco police department for more details on exactly what they found. again, a possible suspicious package. we're going to continue to update you on the story on air and across our digital platforms as soon as we get new information into our news room. >>> powerful testimony today by a jail inmate accusing three santa clara county jail deputies of assaulting him. that alleged attack on juan villa took place on the same night another inmate was found beaten and dead outside his cell. robert handa joins us with compelling testimony. there could be an issue here. that testimony by this inmate could be thrown out. >> reporter: well, that's right, jessica. it was powerful testimony, but as we reported earlier, juan villa does have mental health issues that could make a difference in whether his incriminating testimony will ever be allowed. in

. >> morris: we hit the hot button issues at rsa. >>> it's gonna take weighing the equities on both theell as law enforcement. i sit on the intelligence committee. the threats against our nation are real. >> morris: finding the right balance between privacy and security. a landmark legal battle between apple and the fbi. on monday, satellite 2016 opens at national harbor in maryland. it's a service of the future for an air force focused on innovation. "government matters" starts

the rsa conference is taking place this week in san francisco, and that battle between apple and the fbi that scott was talking about is dominating the conversation here as well. investigators are asking apple to create that back door for the iphone. they need access to an iphone used by the gunman in the san bernardino mass shooting and apple today will be testifying as scott said before congress about that. >> people in our industry are afraid of is, if we allow it now, if we open that pandora's box, who is in charge of shutting it, assuming it could be shut. >> lynch will deliver her keynote speech on cyber security today at noon. in the past she has said there needs to be open dialogue. later on today she'll also participate in a more informal conversation. >>> lights are back on for more than 100 customers on the peninsula this morning after a dump truck crashed into a home last night. this was the scene this morning as crews worked to take that truck away. the driver was rushed to sanford hospital and crews worked through the night to restore power to more than 100 homes. pg&e

happening in san francisco, rsa conference, big cyber security conference held every year. we got a look at remarks made today by attorney general loretta lynch. they were released ahead of the speech. expected to say that an open dialogue is needed between law enforcement and technology companies to bridge the gap on encryption and other issues of the digital age. her remarks today will come as a congressional hearing will be held today featuring the director of the f.b.i. and general council for apple as the conflict over whether that smart phone belonging to one of the san bernardino shooters should be unlocked. it is an issue very much in the forefront today. she will be speaking about it today at the big conference of cyber security digital super back to you. >> john: thanks, kristen. >>> a photographer and secret service agent get in a scuffle and all caught on camera. take a look you can see "time" magazine photographer being moved out of the way by the agent at a donald trump rally. happened when the photographer stepped out of the media area to get a better photo o

. >> the keynote speaker at the rsa cyber security conference. >> today we rely on digital technology as routine as conversations. or watching movies, buying groceries, and also, for functions, as consequential, as distributing electricity and directing on military. >> the issue of privacy versus public safety has been brought to the floor as law enforcement leans on tech giants including apple to assist in investigations. >> we also have a new avenues for variety of wrong do ers, from thieves, hackers, violent extremists, spate sponsored actors, the list can and will go on. while the nation top cop spoke, apple's top lawyer testified on capitol hill. >> now find ourselves at the very extraordinary circumstance. the fbi has asked the court to order us to give them something we don't have. to create an operating system that does not exist. the reason it does not exist because it would be too dangerous. they are asking for a back door into the iphone, specifically, to build a software tool that can break the encryption system which protect personal information on every iphone. >> at the

so, that announcement about schmidt and the board was made at the rsa security conference in san francisco. schmidt will then pick further members from silicon valley for the pentagon board. google does some defense work. its robots designed to help soldiers carry heavy loads into battle. we sometimes show you these videos for fun but these are robots doing serious work. it is a bit peculiar for goog tool be so close with the pentagon. we're quite certain the founders never expected the company to be a defensor or for its chairman to be a top name at the pentagon. but companies evolve or devolve. sports authority has filed for bankruptcy and says it will close 140 stores. it likely will sell the remaining stores to an outside buyer. about a dozen sport authority stores in the bay area for now. we don't know if they're on the chopping block just yet. >>> wall street looking forward to tomorrow. the latest jobs numbers from the labor department. 5:30 our time. the news has been very good lately. that's an important point. some politicians claim the economy is not doing well and they're gener

this ahead of next tuesday's primary were 42 republican delegates and 96 democratic delegate rsa. senator ted cruz a big boost from a constant governor scott walker. before we get to that, we've got breaking news. the trump campaign manager has been charged. let's go to blake burman in janesville, wisconsin was more. >> hi, charles aired we are indeed in jane bill wisconsin where donald trump will hold a rally later this afternoon at 4:00 local time. the big stories to run a this hour course involves his right hand, his campaign manager, cory luendowski, a misdemeanor for an end event that had been back according to jupiter police on march 8th involving breitbart reporter michelle fields. i believe i just heard stuart talking about it. the new video they just released. they say shows a more clear picture of what exactly happened, to remind back to the night, march 8, donald trump had cleared up the primaries that night. michelle fields says she was just trying to ask donald trump a question or two at the last and that is when she says she was grabbed. here is from the actual polic

we're at the rsa cybersecurity conference. i'm joined by the secretary of defense. thank you for being here. >> thanks for having me. what is that board and what are you hoping to learn from the executives here on the west coast? >> it's a brand-new mechanism to advise my on how the department of defense can better connect to america's great innovative community. the reason to do that is our military, the finest fighting force in the world that's ever known today, one of my jobs is to make sure that it's that way, 10, 20, 30 years down the road. we've always had two great things. we've had our wonderful people. they all volunteer for us, and the second is the connection to american technology. we need to keep that connection going. eric is going to help me think about and implements ways of do that. i'm grateful to him. he's one of the great american innovative minds, and he's willing to do it, willing to spend his time helping us to do what we are trying to do, which is protect the country and make a better world for our children. >> you're here in the apple/fbi fi

>> we recommend at rsa not to use the simple pin numbers.here are great authentication methods that are stronger, such as touchid, or using other biometric systems based upon who you are, not just a four digit passcode. >> grant, thank you very much. we appreciate it. >> thank you. >> good to see you. >>> let's get a check of the weather from mr. roker. >> guys, thanks coming in tomorrow from des moines, to houston, new orleans. upwards of 30 million people at risk for severe storms. and that goes on into thursday from alexandria, new orleans, panama city into parts of georgia. 12 million people at risk for severe weather. strong storms and can't rule out an isolated tornado or two and heavy rain stretching from little rock to atlanta. some places picking up three to four inches. locally it could be up to six inches. that's what's going on around the country, here's what's going on around your neck of the woods. >> sunny and cool this morning, temperatures are in the mid to upper 40s. northwesterly breeze will make it a blustery day. not as

>> we recommend at rsa not to use the simple pin numbers. there are great authentication methods that are stronger, such biometric systems based upon who you are, not just a four digit passcode. >> grant, thank you very much. we appreciate it. >> thank you. >> good to see you. >>> let's get a check of the weather from mr. roker. >> guys, thanks so much. we're looking at severe weather from des moines, houston, new orleans. upwards of 30 million people, 34 million people at risk for severe storms. large hail, damaging winds. that goes on into thursday, for alexandria alexandria, new orleans, panama city, into georgia. 12 million people at risk for severe weather and strong storms. can't rule out isolated tornadoes or heavy rain, from little rock to atlanta. some places picking up 3 to 4 inches of rain. locally, could be up to >>> al, thank you very much. still dealing with wind here. a wind advisory in effect across a good portion of the area through noon. gusts of 40 to 50 miles per hour. still a possibility to at least early this afternoon.

this ahead of next tuesday's primary were 42 republican delegates and 96 democratic delegate rsa.nstant governor scott walker. before we get to that, we've got breaking news. the trump campaign manager has been charged.