has told the fbi to not get in this man's phone. line is a very fine andeen what this man does treason. the president of the united states is muslim and he is going to make sure these people are protected. host: we are not going to address the erroneous comments that the president is a muslim. that,ke this first point hey, these are terrorist attacks. guest: there have been terrorist attacks in the u.s. the latest statistics i have seen it since september 11, there have been nine jihadist in the u.s. and 45 people have died. that is very tragic. blessedly rare that we have terrorist attacks. the real question that we need how much will cracking this iphone do to stop those attacks? this is the first case where anything of that sort has been suggested. i don't think it is true that this will help solve anything. the information on this phone has already been obtained by the fbi. think this will help the investigation at all. there needs to be weighed against the cost of ruining the security of the iphone more generally. forrmation sec

here, the fbi has done that. ou said rather than a warrant based on a 220-year-old statute, i point out the bill of rights is about the same age. the fbi is attempting to enforce the lawful court order. apple has every right to challenge that order, as you have done. why is congress the best place and not the court? >> we find ourselves in a court in california because the fbi chose to pursue we view that as a way to cut off the debate. we would be forced to do the very thing which we think is at issue and should be decided by the american people. we would be forced to create. >> what's your proposed legislative response? do you have a bill for us to consider? >> i do not have a bill for to you consider. >> thank you. that answers that. to ensure that you can access encrypted data with a warrant. you don't like what the fbi said. what's your specific response? >> what we're asking for, congressman, is a debate on this. i don't have a proposal. i don't have a solution for it. one wha i think we need to do is to giv

because directly undercutting the fbi's message. also michael hayden, former directodirector of nsa same basc support apple's position, strong encryption is used national security priority. that should be the right frame. do we want to make law enforcement job easier but then we can our national security? that's a debate. second point is, play on top of that all these issues such as privacy, such as the relationship between our government and you, how much do you want our governmengovernmen t to be able to compel you to take extraordinary action to assist law enforcement? let's say the apple team that developed the smartphone left, went to google, the fbi didn't compel google to do extraordinary actions to help break into an apple iphone? at what limit do we have? at what end do we want our government to compel people to take these actions to help law enforcement? on top of that we have effects on u.s. businesses abroad, and this is not going to affect smart phones year, not just here but countries around the world. the final point i

here, the fbi has done that. in your prepared testimony you said the questions about encryption should be decided by congress rather than through a warrant based on a 220-year-old statue. i point out the bill of rights it's a is about the same age. now, the fbi's fbi's and tempting to enforce a lawful court order. apple has every right to challenge that order as you have done, why is congress not the courts the best venue to decide this issue? >> i think ultimately congress must a decide this issue. i'm completely in support of the position you articulate them. i think we find ourselves in and out situation in a court in california because the fbi chose to pursue a warrant that would compel apple to do something, we see that not as an extension of the debate, not as a way to resolve this issue, we viewed this as a way to cut off the debate. if the court were to grant the relief that fbi seeking we would be forced to do the very thing which we think is an issue and should be decided by the american people. >> now w

has the fbi relied on the act in the past?to the circumstances on which congress has already imposed a statutory duty on a third arty to provide assistance? director comey: i smiled little bit when i hear that because older doesn't mean bad. i am rapidly approaching that point. the constitution is as old or older than the old writs act. it is a tool that i used. every assistant u.s. attorney knows it. i used it when i started as a usa in 1987. it is an act that congress pass when the constitution was a baby so there was a vehicle for judges to get their orders complied with. and it has been used many, many times and interpreted by the courts many times, including by the supreme court. the cases at hand are simply about what is the reach of the all writs act. it is still good law, but how far does it extend, especially given how technology has changed? i think the courts will sort that out. there was a decision yesterday in new york. there will be decisions in california. there will probably be others because this is something

he's directly undercutting the fbi's message. you also have michael hayden saying, basically, i support apple's position, strong encryption is a u.s. national security priority. so that should be the right frame. do we want to make law enforcement's job easier and then weaken our national security? that's the debate. second point is, you layer on top of that all of these important issues, such as privacy, such as a relationship between our government and you, right, how much do you want our government to be able to compel you to take extraordinary actions to assist law enforcement? let's say the apple team that develops the smartphone left, went to google, could the fbi then compel google to do extraordinary actions to break into an apple iphone? at what limit do we have? at what end do we want? do we want our government to be able to compel people to take actions to help law enforcement? and then on top of that we have effects on u.s. businesses abroad and this is now going to affect smartphones here and businesses here but count

that is the envelope from which the fbi is operating. this is not a gs 2 who accidentally slips a piece of paper in the wrong file and it stays out all nigh on somebody's desk. this is the person with highest classification possible who used a private server to conduct all of her government business. this has nothing to do with politics. that's illegal. per se. and the reason is simple. the government has a classified e-mail system for a reason. it's to protect the security of national security information, national defense information, and to prevent its disclosure to unauthorized persons. the existence of that server violates every known federal law on the protection of classified information. >> let's get to calls. joe digenova is our guest. rose is calling in from our democrats line. >> -- missing or hiding or whatever. he should have been the one to go to the white house with them. and he didn't. >> rose, what are you referring to? >> caller: i'm referring to, that hillary clinton has got so much baggage, she could fill a airplane ha

the fbi wants to close off the possibility. is about issues and principles that are much larger than this particular phone, which is almost irrelevant to what's going on. emily: wow. all right. fred kaplan. thank you. fred: thank you. come, scott to kelly's historic year draws to a close. details next. ♪ busy: apple ending a very day. it was a strong day for the rest of u.s. stocks. ramy, what happened? of green happened on the market's beard basically, what happened is u.s. factory data came out a little better than expected. it was still a contraction. that helped to boost investor sentiment. we saw markets closing at session highs and basically at their highest in the past seven weeks, in fact. looking at the numbers, the dow was up by about 2%. the s&p up about 2.5%. the nasdaq was the biggest winner, up by nearly 3%. this is its best day since august. as for the nasdaq 100, three stocks were down. you can see it closed up by about 3%. memory chip makers were some of the biggest gainers. seagate and western digital jumping

we don't want the fbi to listen in. or home is a dark space. the san bernardino case it's likely those two terrorist plans a lot of us just by talking to each other in their home. dark spaces. and with encryption right now you don't need a smartphone or you can just encrypt with another person the fbi can't access it. that does at some level, maybe it's going to make it easier for some criminals and terrorists to take certain actions. but also it does a lot to protect not just people's privacy is but companies privacies and strong encryption again is good for you this is coming as consumers of u.s. national security. spent let's make sure we get somebody from the back. >> thank you. to questions. one that has only been addressed is if you look at san bernardino and the attack, is about an existential threat? i would argue that it's not. we afford to get people which is horrible but it's not an existential threat to the existence of the country. so discussing this big an issue in the context of that one case might be the fbi taking things far ou

the fbi says it was able to hack into an iphone belonging to the san bernardino shooter without the help of the tech company. but the bigger face-off over whether companies are obligated to assist the government still hasn't been settled. don champion is here in new york with more on that. good morning, don. >> good morning, anne-marie. apple says it was looking out for the privacy interests of its customers when it refused to comply with the government, but the fbi's ability to hack into the encrypted iphone raises new questions about the security of apple's biggest-selling device. >> reporter: the fbi won't say who helped it hack into the iphone belonging to syed farook who along with his wife killed 14 people in san bernardino last year. the government revealed in a court filing monday that it gained access to the phone without apple's assistance and is no longer asking the court to order the tech company to help. investigators would only say the testing was carried out by highly skilled personnel and that the investigation of the phone's data is ongoing. >> we don't know how they did

claims iti newspaper was a tel aviv firm which helped the fbi. as already developed software to crack the code to older iphones. the company refused to comment. apple upgrades its software when it discovers holes in its defenses. one security expert said this time it is working in the dark. in an ironic position where the fbi know about a letter ability -- a vulnerability in the iphone that apple doesn't known. they have not been cooperating. if apple doesn't know about this problem and what the fix needs to be, they cannot fix it for their customers. >> as they try to make the customers more secure, apple is in an arms race with hackers probing their defenses. this time it is the u.s. government that is ahead in that race. katty: a short time ago i spoke with the editor of cnet. ok, the government is not saying who did it or how. what is your speculation? >> there are a lot of theories that have given rise to dark humor in the tech community where we joked that it is shocking that apple is being more forthcoming than the government. a company may

i think the fbi's job is very, very limited. we have two jobs. the first is to investigate cases like san bernardino and to use tools that are lawful and appropriate. the second thing it's our job to tell the american people the tools you are counting on us to use to keep you safe are becoming less and less effective. it is not our job to tell the american people how to resolve that problem. the fbi is not some alien force imposed upon america from mars. we are owned by the american people. we only use the tools that are given to us under the law. and so our job is simply to tell people there is a problem. everybody should care about it. everybody should want to understand. if there are warrant proof spaces in their life, what does that mean, what are the costs of that and how do we think about that? i don't know what the answer is. it may be the american people through congress and the courts decide. it's too hard to solve. or law enforcement can do its job well enough with strong encryption covering our communications and our papers and effects

i've spoken to the local fbi. their main office is in manhattan, and they are helping us but i understand this is a national problem. so first i would just ask you to make sure that the resources that they are to help find the perpetrator of the school. and second and finally, what more can we be doing to deal with these swatting incidents which i think are nationwide? >> thank you, senator. this is actually a nationwide issue and we do not view these as pranks or childish calls. they are serious. they divert scarce law enforcement resources to incidents that are not, in fact, acted as you noted they terrify particularly children, parents and cause long-term issues for school districts are dealing with this. we take take them very seriousld will refine these perpetrators we do intend to prosecute them. certainly whatever is being proposed here either by this committee or congress were happy to work with you and legislation that would aid in those efforts but we do take these efforts very socially. it is outside of

for my book "the secrets of the fbi" was able to interview art cummings, the executive director of themeaning third level of the fbi in charge of counter terrorism, and national security investigation, and so you can't find a more author ta thetive source on the subject, and what he said is that he would meet with these leaders, and they would have a good time, but then, for example in one case, a leader said, could you arrange a meeting with me and mr. moehler, the director of the fbi at that time, and he said, sure, but bring me some leads, and this leader said, no, i could not do that, and i would lose my constituency. and in another case, the fbi found two radicals dispelled by a particular mosque, and art cummings mad met with the imam before, and he never mentioned the two radicals, and he went back and he said, what happened? why didn't you tell us? and the imam said, well, they weren't terrorists, but people who hated the government. and so there is a cover-up mentality, and you will see it in many institutions and the government agencies, but in this case, we are talking about

the fbi was dismissive of that at the time.hat's a variant of it the people are speculating was used here. what was your reaction of the fbi's move here to drop this case and is the next step legislation that you or others need to bring in order to keep this happening over and over again. >> the next step is to get educated and see where the fbi or other law enforcement come back with a demand or a request for some involvement by companies that encrypt their product. remember one of the reasons that this case probably was dropped wasn't just that they went out and found another way. it was also that they overreached. they didn't ask apple will you assist us in getting the information off this phone. they asked apple for three specific things that had had to be developed that would have automated, made it extremely easy and remote the possibility of tunnelling in and getting information off your phone. so we suspect, i suspect that if the fbi approaches a case again they will make a better choice as to what they ask a company to

and it's not just the fbi. mean, you've got the irs and social security and others using stingrays -- again, other tools that, i would argue, are to somebody'snt lives and not just the metadata you are able to see. so how do we get exposure? how do we -- how do we help you if we can't -- if you routinely refuse -- and i say "you", meaning the department of in explainingess to us what tools you already have an what you can access? how do we solve that? dir. comey: yeah, i don't -- i don't have a great answer, sitting here. i'll go find out what's been asked for and what's been given. i like the idea of giving as much transparency as possible. i think people find it reassuring. we always use search warrants. it should not be that hard to give you that information. rep. chaffetz: what i worry about -- you may be responsible, but i don't know what the irs is doing with them, and i have a hard time figuring out when that is responsible. last comment, mr. chairman. to what degree are you able to access and get into --

in this whole dispute with the fbi, one of the things apple did was to immediately give the fbi the iclouded about six weeks before this horrific terrorist shooting but still had obviously some information on it and they said publicly they wished that the fbi had been able to make a new icloud back up so there is information. not everything but most of what is on your phone is in your icloud back up and if you signed up for that or didn't turn it off and that's how you back up your phone you have a security vulnerability. it's not just law enforcement but anything can be hacked and so your vulnerable. >> one of the things that this brought up for me, he was pointing out that they started giving the customer the encryption keys so they have the choice whether to let authorities, i guess, into the cloud. the other is there appears to be some wiggle room. at least some space for compromise here between apple and the government as they forge a path forward. apple willing to give over what it has in the cloud. you talk about backing up locally instead of in the cloud. whatever you back up on to

the fbi has done a great job already. it is my understanding that the attack in san bernardino was not planned or coordinated by isi s. >> so far as we know, correct. >> eliminated? >> any evidence. >> we have not. >> okay. >> now, given those facts no evidence of coordination the investigator sees, reaches out, provides information the same day and the next day san bernardino county change the password and did so without consulting apple at the instruction or suggestion of the fbi, and changing the password for close the ability for an automatic backup that would've allowed an apple to provide this information and thus necessitating the 1st was the application to the court that you made and we are discussing today. in other words, if the fbi had not instructed san bernardino the change the password all of this would be unnecessary and you would have the information. so why did you do that. >> i want to choose my words very, very carefully. i said there is no evidence from overseas. this is alive investigation. it is not o

but, you have to go beneath the surface of superficialqñd7y meetings. fbir say publicly we don't get cooperation from muslim leaders. the truth is in this> they may not be the existential threat but they can certainly be a threat to many, many hundreds of americans or more. >> millions with biological weapons you could wipe out millions of americans. >> that's scary thought. were rudy giuliani scorches president obama's response to the brussels attacks. and eviscerates hillary clinton over the rise of >>> thanks for staying with us, i'm eric bolling in for bill o'reilly. as we continue with the special edition of the factor, election 2016, the terror equation, former new york city mayor rudy giuliani entered the no spin zone with bill o'reilly this week hammering president obama's response to the brussels attacks. isis is playing in the presidential campaign. >> i don

that's apple on the fbi. guys, this raises a whole bunch of questions, including wether or not the u.s. government is going to tell apple exactly what exploit it used. there's some tension here because this is now a security weakness in the apple phone, whatever it is. apple will want to know what that is. the u.s. government, though, has incentive to keep that information private in case it want tos to use it in other cas. the government was not commenting on what they did or who brought this information to the government's attention. >> i guess, eamon, we also don't know what is on the cell phone that they've managed to unlock. >> right. i asked a senior law enforcement official last night who was briefing reporters exactly that. they simply declined to say. they say they're going through the information on farook's phone to figure out whether anything there is useful for their investigation. they had said there was sort of a dark period after which farook had turned off some of the settings on his phone th

the fbi doesn't need the nsa. one of the methods is actually to copy the content of the phone so when the iphone erases all the data, they have another ship that works as a file backup -- another chip that works as a file backup. it only cost $60 and is used to upgrade the phone. on the software side, experts say the fbi should find and exploit crack's in software. there are flaws found in apple stuff all the time. what the fbi can do, it needs to find the vulnerability and get the data. experts are saying these methods aren't easy. they say the fbi isn't probably trying, because this case is about setting a precedent. emily: the fbi is in trying? think there are four easy ways to get into this phone. paul: the fbi can look for software bugs, they can look for channel attacks, look at radio emissions from the device and figure out information you they can figure out glitch attacks and cause it to load an unsigned operating system version by bypassing signature checks. or maybe they can pull information out. to do

for now, the fbi says it wants to test this idea to see whether it works. it does, then it would drop its lawsuit against apple and abandon a court hearing set for tomorrow. the company has been aggressively fighting back against the fbi's request that apple write special software that would disarm the phone's security features and allow the fbi to use a computer to guess the pass code. the fbi tonight won't say who this idea came from or what it was, saying it wants to keep all that confidential for now. lester. >> nbc's pete williams, thanks. >>> still ahead tonight, banking on your potential. we're going to talk about the new way people are scoring loans and slashing their bills. >>> also superstar serena williams firing back after a tennis official lobs remarks that many call sexist. >>> and welcome back to havana. behind me the museum of the revolution. for people with bad credit or no credit, it can be tough to borrow money at an affordable rate. but there's a new kind of lending based more on your future potential than your credit history. nbc's oliv

may be kept in the dark about the fbi findings. but the public has a right to know the facts even if those facts do not result in conviction. it is about a systematic effort to avoid freedom of information laws and federal record laws because you have heard me say so many times that the public's business are to be public. the records of government business i think, belong to the american people. simply said, the american, the american people ought to know what their government is doing and must be sure that it is free from the interference of political appointees in the executive branch. i conclude now by said i look forward to conducting oversight over these issues, again thank you for being here attorney general lynn chen for engaging in these important parts of our system of checks and balances, and also thank you so many times since you have been attorney general for discussing things with me on the phone one-on-one, i appreciate it very much. now i call on senator leahy. >> thank you very much. i do welcome our nation's top law

the good news here is the fbi broke the supposedly unbreakable code and we'll find out -- or the fbi hat was on the terrorist's phone. the bad news is it kicks the can down the road. ultimately, arbly, congress has to legislate and regulate on the issue. this is a toxic product and it is a weapon of war, and ultimately there will be lawsuits challenging anything congress does and will be decided by the supreme court. but in the meantime, in the meantime -- go ahead. ashley: i know immediately people who do not agree with you are saying, this is a slippery slope, once you give the government the key to the back door, they can surveil people without our knowledge, something apple used in its defense. how would you respond to that? >> having worked in intelligent for over 20 years, i will tell you it is a grotesque abhorrent myth that the u.s. government is look over everybody's shoulder and wants to spy you on. the intelligence people, personnel in our government are too busy protecting us. there are incredible safeguards to protect the citizens from government spying. that is crazy alt

ceo tim cook argues that helping the fbi would set a precedent if it created a so-called backdoor that would allow investigators to gain access to the iphone. >> we have a responsibility to help you protect your data and protect your privacy. >> reporter: the iphone 5c running apple's os9 system was issued to farook by his employer, san bernardino county. after the shooting, they could not crass the phone's pass code. the agency asked for apple's help, saying it was the only way to gain access to the data. california congressman darrell issa is critical of the way the government handled the case. >> i would prefer that the fbi and everyone involved keep their knowledge of how this is closely held so that it doesn't become a vulnerability on the street, and at the same time, they're not back asking apple essentially to develop a back door again. >> reporter: but the government's newfound ability to crack iphone encryption raises a new series of questions. >> the broader issue is not over, though. the government and law enforcement are going to keep wanting access to phones. tech compani

has told the fbi to not get in this man's phone. line is a very fine andeen what this man does treason. the president of the united states is muslim and he is going to make sure these people are protected. host: we are not going to address the erroneous comments that the president is a muslim. that,ke this first point hey, these are terrorist attacks. guest: there have been terrorist attacks in the u.s. the latest statistics i have seen it since september 11, there have been nine jihadist in the u.s. and 45 people have died. that is very tragic. blessedly rare that we have terrorist attacks. the real question that we need how much will cracking this iphone do to stop those attacks? this is the first case where anything of that sort has been suggested. i don't think it is true that this will help solve anything. the information on this phone has already been obtained by the fbi. think this will help the investigation at all. there needs to be weighed against the cost of ruining the security of the iphone more generally. forrmation sec

did the fbi unleash a hacker army on apple? it quotes the director of the who says lotsey, of folks have come to us with potential ideas as to how to crack into the phone. the report that the knight in shining armor the fbi might have been an israeli company named celebrate. just last week, celebrate signed a more than $15 million contract with the fbi. the other detail is that one of celebrates other clients is apple. >> let's go back to france where they are focusing on the major demonstrations and strikes scheduled across the country tomorrow against the planned labor law reform. >> the communist papers calling on people to take to the streets tomorrow. this is their front page. everybody take to the streets against this change to the labor code in france. the planned reform is -- was andented to mp's yesterday the government tried to water down the reform to make it acceptable for workers. they accuse the government of trying to trick people and pretend to make concessions. to quote the editorial, the prima nestor has not ch

but, you have to go beneath the surface of superficialqñd7y meetings. fbi we don't get cooperation from muslim leaders. the truth is in this> they may not be the existential threat but they can certainly be a threat to many, many hundreds of americans or more. >> millions with biological weapons you could wipe out millions of americans. >> that's scary thought. were rudy giuliani scorches president obama's response to the brussels attacks. and eviscerates hillary clinton over the rise of i've been on my feel all day. i'm bushed! yea me too. excuse me...coming through! ride the gel wave of comfort with dr. scholls massaging gel insoles. they're proven to give you comfort. which helps you feel more energized ...all day long. i want what he has. don't let dust and allergies get and life's beautiful moments. with flonase allergy relief, they wont. when we breathe in aller

apple's general and the fbi director face-off. access their wife owns, these are pictures live from capitol hill. access to iphones, these are pictures life from capitol hill. is the writerfy linchpin we will talk about -- later, we speak to loretta lynch. surging 2.75%. vonnie: this is bloomberg markets. let's check in on where the markets are. highs.p to session next, a look at the dow industrial jones -- dow jones industrial average. and a look at the nasdaq composite index. time now for the bloomberg business flash. authorities looking to file for bankruptcy. sports authority has talked about selling stores and dick'sctual property to sporting goods. is buying a cloud computing company. acrosss companies manage data centers. tomorrow, the persian gulf airline emirates will capture the title "the world's l ongest flight." the record won't last long. the face-off between apple and the fbi moved to the capital today -- to capitol hill today. earlier, james comey told congress this issue is not necessarily by gaining a backdoor. di

down 0.7 for the month. >>> the fbi has dropped its demands. e opened the iphone in the san bernardino terror case. this after the fed said they can open the phone using a third party. now, all along the fbi has said only apple was capable of doing this. >>> a new paper published in the journal of clinical investigation said test subjects who submitted their blood to cholesterol tests to the bay area's blood testing company theranos received results that were vastly different than what uth traditional blood tests showed. the paper's authors say the results were so different it could affect decisions made by doctors as to whether to give their patients statins to protect their heart. the authors who are doctors in mt. sinai said they tried to show the results to the bay area and they couldn't get anybody to respond. ultimately, sam and kris, they used the in-mail function of link linkedin to and a company that used to be a high flier and now tons of doubt about that company. >> just last week chelsea clinton at the home of the founder for a fund-

has an obligation to share it. >> the fbi did not need apple's help to get a suspect's phone brokenhe company said it would compromise security for all users. david louie talked to cybersecurity experts to find if we need to worry. >> reporter: the fbi miscalculate when it turned to apple for help to crack into syed farook's phone. tim cook took a very public stance saying no. now apple has to be curious how a government contractor did it. while ape is trying to find out from the fbi what the technique was and i suspect that they are not going to get it, that's my guess. i think it's unlikely, the fbi will disclose. >> reporter: herb lynn is specializing in cybersecurity. he speculates the fbi is more likely to disclose how it got access with a cross agency white house group. that body addresses security issues. bob's based company is one of several that specializes in penetrating secured devices. another is israel based sully bright documented by public records. he doesn't think consumers need to be worried. >> it's not easy but doable. the fact one phone was hacked, it means that

the fbi ran 2.6 million checks. the third biggest month on record. the record was in december at 3.3 million checks. the agency conducts the checks every time someone tries to buy a gun from a federally licensed dealer. >>> students in south carolina could require children to stay in a child safety seat for longer. bill would keep kids in rear facing seats until they're two. and in forward facing seats until the age of eight instead until they're 13 instead of six. a columbia pediatrician told lawmakers keeping kids in the backseat until 13 reduces the risk of injury by 70%. but critics say it's crazy to have someone in the back until two years before they get a driver's permit. >>> we're going to see clouds moving in throughout the afternoon. >> sunshine saying so long here. the rain will be moving in by the evening drive. it won't be that heavy. but it picks up into the night tonight. a chance for rain showers through the over night hours. we'll barely get close to 50 today. steve will have the updated time line on when the rain rolls in on live ea

>>. >>> plus the fbi calls it operation romeo and juliet. ing about a scam that's pulling on people's wallets and their hearts. >>> and we've got turbulent temperatures. temperatures are going to rise and then we're going to cool as we get into the weekend. we've got full details on that weekend they say character is what you do when no one is watching. david trone banned the box so people who've paid their debt to society could have a chance. and fought so hard for criminal justice reform, they named a center after him. and because education was his way out david offered it free to employees. and over 14 years ago began offering them partner benefits. evening the playing field has always been david's mission. in congress it'll be his job. it's not how you run, it's how you live. i'm david trone and i approve this message. >>> more backlash for north carolina, the governor of new york is banning all nonessential state travel there. andrew cuomo isn't happy that north carolina government has stopped protecting gay and transgender people. the n

but, you have to go beneath the surface of superficialqñd7y meetings. fbipublicly we don't get cooperation from muslim leaders. the truth is in this> they may not be the existential threat but they can certainly be a threat to many, many hundreds of americans or more. >> millions with biological weapons you could wipe out millions of americans. >> that's scary thought. were rudy giuliani scorches president obama's response to the brussels attacks. and eviscerates hillary clinton over the rise of ♪ if you have moderate to severe ulcerative colitis or crohn's, and your symptoms have left you with the same view, it may be time for a different perspective. if other treatments haven't worked well enough, ask your doctor about entyvio, the only biologic developed and approved just for uc and crohn's. entyvio works by focusing right in the gi-tract to help control damaging i

one, did the fbi really open the phone? it would be more accurate to say the fbi says it did. two, why did it tell congress it couldn't if at the same time it was working with third party companies. and, third, did the fbi miss a major opportunity here? did it give up its very best chance? it could have taken apple through the court system. using this rock solid terror case. one in which half of all americans supported the fbi. now, apple, for its part, issued a statement yesterday saying americans continue to deserve both security and privacy. >>> let's check your news before the bell on this tuesday morning. landon dowdy is here. good morning, landon. >> hi, there, scott. good morning to you, as well. wall street could be headed for a down day. futers are lower right now and the markets ending mostly flat on the lightest trading day of the year. look for data for home prices and consumer confidence. janet yelin speaks aeconomy this afternoon. the dow rising 19 points to 17535 and the nasdaq slipping six points to 4766. scott, back over to you. >>> it looks like san francisco

clinton: the fbi may have found a workaround. ere will be future cases with different facts and challenges. so the tech community and the government have to stop seeing each other as adversaries and start working together to protect our safety and our privacy. emily: this issue is not going away. especially if my phone is even more on hackable -- un-hackable. what happens next? >> a lot of people have been saying the fbi taking this to court was a way of forcing companies to work with them. perhaps as adam was saying, the fbi has been able to get to this phone because they are loath to admit it. in the election, we will see it recur in presidential debates and various discussions along the line. emily: adam if it is possible, , maybe not easy, certainly possible, as you say, to do this, what method do you expect will be used? how long will it take because of they can get into the phone, it undermines the case against apple. if not, makes it a moot point. >> i agree. it is a moot point already. it has been four weeks. the fbi and m

in this case, the fbi was successful about getting into the iphone 5c. oliver: apple could request that the fbi develops the method of breaching the system, -- diebold the method of breaching the system but the fbi may not comply. the fbi's success in hacking the apple system means that tech companies will need to up their game to keep customer data safe and prying eyes. -- safe from prying eyes. catherine: staying in the u.s., donald trump's campaign manager has been charged with battery after he assaulted a female reporter. they lewandowski denies allegation, saying he is completely confident he will be exonerated. female journalist says he grabbed her arm and left her with bruises as she tried to ask donald trump a question. currently the front runner for the republican party's presidential nomination and is increasingly facing accusations himself of inciting and endorsing violence by his supporters. a new report from unicef out today says that at least six children are being killed each day in yemen on average. the u.n. children's agency says that in

. >>> now, to breaking news in the battle between apple and the fbi. as you know, at the center of that fight is whether apple should help the fbi break into the iphone used by the san bernardino killers. well, tonight, the fbi says they have now hacked into that phone themselves. so, will they drop the case against apple? here's abc's senior justice correspondent pierre thomas now. >> reporter: tonight, the justice department has revealed that the fbi has now successfully retrieved the data stored on the san bernardino terrorist's iphone, and therefore no longer requires the assistant from apple required by a court order. they had been in a fight with apple. apple refusing to unlock the phone. tim cook telling david just weeks ago -- >> i want to get to what the fbi director, james comey, has said. he said, it's not about a slippery slope. it's about, quote, 14 people who were slaughtered and many more had their lives ruined. maybe the phone holds the clue to finds more terrorists. maybe it doesn't. but we can't look the survivors in the eye and oursel

apple has cooperated completely with the fbi as far as it can go with respect to this phone. the power to break into this phone unless it redesigns the encryption system, the operating system in the phone. so fbi is saying, we don't like the phone the way it's presently designed. we can't get into it. you designed it in such a way that we can't break into it, so we want you to redesign a new operating system so this new iphone and hundreds of millions just like it won't protect the system, won't protect the security of the people who are depending upon it. >> we also asked him how the case impacts people who live in our area even if they don't use apple products. >> in the first place, we're talking about constitutional principles. we have an independent judiciary and a bill of rights that protect individual liberties in this country. when an individual is faced with a government request that goes beyond those constitutional limits, it's important that individuals and companies in this case, apple, resist that and ask a judicial officer to consider the issues. so what apple is

the fbi uses once for all content. we do know all aspects pass that like the law that chris mentioned provides a very useful tool to have this discussion because if you don't think the all writs act as the proper tool, if people have concerns about the fact that there are broader ways to access this information, so so creating this tool for even cyber criminals which is one tool in a world of accessible information, we think that debate should be joined by congress and that should provide ample around that. >> in your expertise do you believe investigators made a mistake in telling the san bernadino county to reset the password in the phone that precluded another attempt at backing up that data on the cloud that would've been a made? >> i don't understand exactly way apple backs up their data, i do know there is a factual dispute between the fbi and apple about how that exactly played out. it is a separate question question from the one that is presented here which is, should apple comply with that magistrate's order no

she was asked about the fbi's relocation and updates to data technology. this is an hour 15 minutes. >>> we're going to get started. the hearing will come to order. welcome to everyone. like to welcome general service administrator denise roth. last year you were here after just a month on the job. now you have been on the job for over a year so we are happy to welcome you back. now, everybody knows this is a leap year, right? so today is leap day and with that in mind, i think we should jump right in. i want to see if mr. serrano was paying attention. the budget request today is for $10.18 billion for the federal building fund which is less than 1% below enacted so that's less than last year but while your request appears to be flat, it spends $371 million more in rental income from agencies than it did last year. so i caution the gsa from growing overzealous in its request. in the 2016 omnibus, gsa received an unprecedented 215% increase for construction and acquisition for numerous construction projects and this was a significant increase, but this level

what he thinks is the ultimate answer to the apple versus fbi question. not. they're inside this first-ever markets, the dow jones industrial average up 232 points, if we are an hour and 12 closing bell, got to stay with me, lots of breaking news. let's start the countdown. let's get to the markets. us at this moment we see new life, the s&p 500 and nasdaq trading at their highest levels since january. january was a rough month that's scare a lot of people, the dow up 339 points, both major averages, the s&p and nasdaq closed lower for the month of february but now you see a big jump up 44, the nasdaq by 122. what is happening with one hour left to trade, nine ten isn't the 500 sectors are seeing big gains led by financials, technology and materials, three sectors the struggle over the last couple months, telecom is the single ladder at the moment. crude bubbling up at the highest level since january 28th, we have jumped at 2%, up $34.39, that is where the boost from stocks seems to be coming from. oil and stock prices trading in lockstep as we have seen. let u

. >>> apple's next big problem, figuring out how the fbi hacked its iphone. and now the fight over getting the white house to tell them. that's next. >>> plus, the one stamp you don't want on your passport. tonight, sex offenders and the fear over them flying. >>> also, the first surgery of its kind, how it's giving hiv positive patients a chance for longer lives. and -- >> that will score a run. >> how one bay area company is going to bat for >>> cupertino, concord, wine country, and all the bay area, this is "abc7 news." >>> prosecutors will not seek the death penalty against three drifters accused of two killings here in the bay area. the district attorney's office made the announcement today. the three now face the possibility of serving life without parole. they're charged in the death last september of canadian visitor andre kerry at golden gate park and steve carter, along a marin hiking trail. the two murders are being jointly prosecuted in marin county. >>> well, first the fbi badgered cupertino based apple to hack into the iphone belonging to the san