kate figgins is standing by -- tim higgins has been standing by. as suggested an alternative way to unlock this iphone without apple's help. what is your take? tim: the government saying an outside party advised the fbi about this method and the fbi needs time to test it to see if they can get this to unlock without damaging any of the data. asking the court to cancel the hearing tomorrow and check back in in april. if they are able to get into this phone, they do not need to force apple to help them. emily: wouldn't the government have tried all other avenues before taking this route with apple? and as soon as this case initially was brought up, there were security experts say and that there are other ways to do this. what do you make of that? tim: this is one of the key points apple has been hitting hard with rebuttals to the government. they felt the government had not pursued all options and had not proven that they needed to force apple into this position. it is something we heard from lawmakers when the broader issue went before congress earli

tim higgins has been on capitol hill, covering this hearing. what are your main takeaways?> apple wanted a national debate and the fbi brought it today. the director talking about how what apple is doing is creating asked that one lawmaker if it would provide a sanctuary for criminal underground and he said yes. beyondevating the debate just the discussion in california. taking it to the halls of the capitol. emily: let's talk about the fbi specifically. what do you take away? what do you clean from komi -- comey's testimony? >> the kind of information they are trying to get out of these phones is the kind of information the fbi has collected with lawrence in the past -- warrants in the past. technology has gotten to a point where they can't access it. that is what has changed. they are making the case that we as a society are accustomed to having warrants to get this information. emily: what about apple? how has their argument been presented? has a default from what we heard this weekend last week? >> the fbi tried to paint apple and some of its motivations as marketing-dr

joining us now to discuss alex webb cover apple and tim higgins. tim i want to start with you. coming from the justice department, how has it evolved. has the government updated its original point? >> they're really hitting apple hard, saying this is a diversion. it needs to become a more national debate. making the argument to the court that this is not a burden on apple because apple created this situation by building guy devices beyond the reach of a government. emily: revealing new bits of information. for example, i thought it was kind of a bombshell that apple has provided data to the chinese government thousands of time. 4000 requests, apple has 74%. >> apple talked about this quietly in the past. there was an interview in the chinese newspaper where they talked about this. apple -- justice department and the u.s. attorney making the case that apple has repeatedly allowed search warrants to be issued and has given up data whether it's in the u.s. or 27,000 cases or 4000 cases china mentioned. they regularly reviewed these things. part of the tests of this act is the reas

tim higgins was at hearing and joins us. what are the big issues here? ngress calling for in the department of transportation to get more involved. tim: it is really remarkable. google is asking congress to expand the dot's authority cars.te economist you don't often see congress to get more involved in their industry. what is the mood of senators? are the enthusiastic or skeptical? tim: part of this is an escalation by google to counter what is going on in california where state regulators are trying to implement restrictions. they took it to congress. they appear to be getting a nice reception today, generally pretty shery are members of the senate saying it is probably time for the government to get involved. if they do not want road bumps or hurdles in the future. emily: there was a warning by an expert from duke that set the national highway transportation safety administration does not have the expertise to properly regulate this technology and that people are going to die eventually and what happens then ? tim: it is a matter of time. the question

joining me is tim higgins from washington and back with me in san francisco, alex webb.alking earlier about the hearing in particular, that's happening on tuesday. what exactly are we expecting? we expect the ruling? >> it's possible. it become it on a stage from tuesday onward. it could take six month or week and a half. the magistrate might you have an indication on what she is feeling and thinking and there will be evidence presented and some expert witnesses will come forward. then we will see what the judge says at the end of it. emily: i spoke with the apple attorney earlier this week so take a listen. >> we are looking forward to getting our brief on. we will walk through the facts in the law and show why the government is really asking for something no federal court has ever granted. emily: do we have any indication which way the judge is leaning? >> we know what the judge said. emily: exactly. >> it's very hard to tell. we have had no guidance. until tuesday. it's perhaps a big shock for what is essentially a regional, local judge in riverside, california dealin

mark: tim higgins joining us live on capitol hill.opening the committee hearing. director,y, the fbi and apple's lead lawyer will be testifying about privacy versus national security. alix: the biggest names in cyber security are in san francisco today. apple's case is likely a hot topic of the conversation. allen is the former u.s. coast guard commandment and is the lead responder in hurricane katrina. what are things like an rsa with apple lurking in the background? commander allen: everyone 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

vonnie: thank you, tim higgins on capitol hill. have full coverage of the hearing starting at 1:00 p.m. eastern. this apple case is grabbing the nations attention on how stronger encryption and national security works. we are joined now by john carlin, assistant attorney general. he is at the rsa conference in san francisco. it is all about security. thank you for joining us. you are right at the center of the debate between cyber security and privacy. on howo you come down much we should reveal in order to keep the nation safe? both.believe strongly in in the national security space, our job is to help support companies use strong encryption to protect their data from cyberattacks, spies, terrorists. at the same time, we need to be able to have access to some of that information through court orders in specific investigations of terrorism. i think the two are linked. in order to have the best security, we need both good encryption and the ability to use lawful court process. involvedou were very in the prosecution of the boston ma

tim higgins and joining us live from washington, d.c. other news we are watching today. tuesday couldn't have been much worse for valeant pharmaceuticals. more than half of the company was wiped out. valeant also warned it risked breaching some of its $30 billion in debt agreements if it can't file is and you will report on time. bill ackman says it will take a much larger role in the running of the company. evidence of new accounting errors, admitting an overstated process by more than $50 million in toshiba. toshiba is expected to announce its business strategies for the next fiscal year. shares down about 1% in tokyo know. some big names identified, subject to a 23% dumping margin. u.k. exporters were hit by the highest margin of 49%. china's national people's congress wrapped up today with a key message is seeming to be the government will do whatever it takes to support short-term growth. stephen engle joins us from beijing. what are we expecting today? stephen: we will get the annual press conference from the premier. the premier will be answering questions. it is

tim higgins, thanks so much. still to come, elon musk has spacex. jeff bezos has blue origin. difficult is it to get a space startup off the ground if you are not a billionaire? we will hear from the world's first accelerator for this industry later this hour. ♪ emily: let's get a check of the markets. what moved? >> good to see you. got a little bit about memory chips, something about the airlines. but first, let us take a look at how the markets ended today. the s&p and the down down about a half percent. the nasdaq was down the most. by about 1.1%. it was the biggest loser today. in fact at its lowest in a week. for every stock up, there were four down. some of the laggards included google, alphabet, basically the biggest weight on the nasdaq today. the reason is because of google's business in russia. it turns out that russia's federal and time in a police service says they violated antitrust rules and the antimonopoly chiefs basically said there was no compromise that was going to happen with google. shares falling about two thirds of a percent. in the disk space, seagate

tim higgins joining us today from washington. thank you for that report.w, we will talk about the future of medical testing. radio.s out on the you can listen on the bloomberg radio at at bloomberg.com and on sirius xm for you -- serious xm. ♪ mark: let's start with a check of your first word news. the european union and have been at signed a deal normalizing relations. toowing the eu and havana collaborate on projects ranging from environmental protection to modernizing cuba's tax collection system. >> have somehow finalize the date [indiscernible] that our american friends art doing with -- are doing with cuba. mark: they have a long and close relationship with the island but there have been disagreements over human rights and political reform. there is an uproar in the u.k. over comments president obama made in an interview with the atlantic magazine. the president called libya a mess and in part blamed british prime minister david cameron and other british allies. the press is calling his remarks and unprecedented attack on the prime minister. -- thean

we go to washington where our apple expert tim higgins is standing by.ve we heard from his testimony? >> tough questions to the director from certain members of congress. congressman isis hitting him hard, asking them if they had done enough to explore all avenues. hittingt he is him hard. we are the full force of the united states government and military as covert operation agencies cannot crack a iphone 5c? gone to all members of the government and asked for help and had not been able to get into it yet. that is why they need to take this up, use the courts to access this one phone in southern california, following these terrorism attacks. matt: has director called me made any statements to the larger issue? people are saying that he wants to push this to make more americans willing to trade privacy for security. >> he wants both. he wants privacy, and he also one security. they have to find a balance. he is asking huggers to have that debate, and they are beginning to have it here today. this," related this to a house security. he wants apple to have

david: joining us now is tim higgins from washington. he has watched part of the hearing. this was billed at the shootout at the ok corral. was it that dramatic? tim: there were some elements of great drama. tow wo giants going at it. the government is arguing that apple is creating forantless faces, havens terrorists and criminals and that we as a society shouldn't let one company decided that is where we want to have going forward. youd: josh, i want to bring in here. is this as big a deal as people are making it out to be? josh: i think it is a big deal. what you see for the first time is a clear example where the u.s. technological lead and the u.s. national security lead are coming into direct conflict. the hearing is about which one is going to be more important. david: what i'm confused about as it appears that apple in the past has complied with request similar to those from the at the. why are they making a big deal about it this time? 2014, apple came out with new encrypted software that made these felons, they would not be able to get into them for the governmen