the other reason is the fbi has sought from apple and apple has cooperated and given the fbi the icloud back up. apple has turned that information over to the fbi. reseti made a mistake and the password on the icloud account so we do not have the very latest information from the account. the other reason is the fbi has sought from verizon, the carrier associated with the phone, the phone call and text messaging data from the phone, even for the period that is not covered by the icloud back up's. the fbi has quite a bit of information on what is on this phone already. i think this is not being brought to further this particular investigation but i think it is being brought as a test case, because the facts are so conducive to the issue that you talked about, the public opinion, does this is a very rare terrorist case, national security case. it is the kind of case that is most favorable to the fbi. at the same time, over the same period the fbi made a similar argument in a case in new york and a judge ruled they did not have the authority to ask apple to create a back door into the iphon

fbi's exact specifications and for the fbi's use? we believe that each of these questions deserves a healthy discussion and any decision should only be made after a thoughtful and honest consideration of the facts. most importantly, the decision should be made by you and your colleagues as representatives of the people rather than a warrant request based on a 220-year-old statute. as the judge concluded yesterday granting the fbi's request would thoroughly undermine principles of the constitution. at apple we're ready to have this conversation. feedback and support we're hearing indicate to us the american people, too. their friends infarction families and neighbors will be better protected from thieves if we can protect their data and freedoms and liberties we all cherish will be more secure. thank you for your time. i look forward to your question. >> thank you, mr. sewell. ms. landow, welcome. >> thank you for the opportunity to testify today. fbi has pitch this had battle as one of security versus privacy. a number of members hav

because directly undercutting the fbi's message. but 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 po

fbi can't access it. and 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 privacies but companies' private situates and strong encryption is good for u.s. business, consumers and national security. >> let's get somebody from the back. in the blue tie. >> thank you. two questions. one that hasn't really been addressed is if you look at san bernardino and the attack, is it really an existential threat? i would argue that it's not. we have 14 dead people which is horrible but it's not an existential threat to the country. discussing this big an issue in the context of that one case might be the fbi taking things far out of proportion. secondly, we have only touched on apple but let's say apple were compelled to do this. run off to blackphone.ch and you will get something that's a lot harder to crack than an iphone. so we are just moving the goal posts. there is no end in sight. >> so i th

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 what is your proposed legislative response? do you have a bill for us to consider? >> no i do not. >> okay thank you, that answers that. now the fbi has provided some fairly specific policy proposals to ensure that law-enforcement can access encrypted data with a warrant, what policy pr

a few weeks back, the fbi's general counsel james baker acknowledged that the fbi is "working on matters related to former secretary of state's use of private e-mail." officials said that hillary clinton is not a target of this investigation and it is not trending in that direction." the president then weighed in, even though he rarely had never been briefed on the matter, commenting he did not see any national security applications in hillary's e-mails. obviously, this is a matter of considerable import. is there anything you can tell us as to when this matter might be wrapped up one way or the other? director comey: i can't. as you know, we don't talk about our investigations. what i can assure you is that i am very close personally to that investigation to ensure we have the resources we need, including people and technology, and that it is done in a way that the fbi trusted to all its work, independently, constantly, and probably. -- and promptly. chanot: i thought you might say that, but you cannot blame me for trying. if apple tries -- chooses to comply, maybe it does have the tech

critics call it gov-os or fbi-os. an operating system would be easier for the bureau to open and search. some call it a golden key or backdoor. director comey says it's a front door. a law full search for leads from a dead homegrown terrorist. either way it is a battle over much more than one phone. manhattan's district attorney cy vance says he has 175 apple devices in sitting in new york evidence lockers he can't unlock. the los angeles pd has several hundred more. apple has already flagged more than a dozen cases across the united states where the fbi wants it to crack down, to crack its own security systems. if apple unlocks one device where will the line be drawn? the endgame, what every it is, will impact your phone, my phone and millions of others. it could have huge consequences for american tech firms. american cops and spies and every american and probably every world citizen's cybersecurity. as i mentioned this is an area i know something about, i was a senior member of the house intelligence committee on 9

former fbi agents talk to current fbi agents. when all is said and done, there are few secrets in this town. and one thing that we know for certain is that the agents who are assigned to this case and now it's 150, according to the latest count, they are doing both an investigation of the server and how it was used and what was compromised. we know that as a result of analyzing the server, we know from intelligence sources that there's a major damage assessment under way to see what was compromised as a result of the server and we also know that now that the boeing deal and other things are being -- and the reason is, when the fbi goes out and talk to somebody about something, those people that they talk to, those witnesses, they're not bound to secrecy. they talk to people and they say, i had the strangest visit today from an fbi agent involving boeing aircraft. so the answer is, washington is very good at keeping some secrets, but not very good at keeping many secrets. >> who makes up the grand jury? and are there any evidence

the fbi wants to close off the possibility. it really 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 digi

claims iti newspaper was a tel aviv firm which helped the fbi. it has 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 compan

we worked closely with the fbi. that's rally given us a sense -- >> do you have an appraisal of the hoover building? >> the appraisal we have on record is actually an older appraisal. we will likely do appraisals as we go through the process this year. but really, what we're looking for, what we stood up compared with where requirements are today from the fbi and having worked closely with them what we know about the sight themselves and having gone through the environmental evaluation with them, and what we will see in june as we get those responses back from the developers. that's really what we're lining up. >> i guess there's two sides of the equation. if you get into a swap or an exchange, what's the hoover building worth, right? and then how much is it going to cost to build this new 2.1 million square feet. it sounds like you didn't have a very good idea of what that was. if you missed it by almost $2 billion, right? >> i believe the effort was really about an exchange to offset any request for appropriations

a few weeks back the fbi's general counsel james baker acknowledged that the fbi is, quote, working on matters related to former secretary of state hillary clinton's use of a private e-mail server, unquote. and josh earnest stated, quote, some officials over there, referring to the fbi, had said that hillary clinton is not a target of this investigation and that it's not trending in that direction, unquote. and the president then weighed in. even though he apparently had never been briefed on the matter, commenting that he didn't see any national security implications in hillary's e-mails. and obviously this is a matter of considerable import. is there anything that you can tell us as to when this matter might be wrapped up one way or the other? >> i can't, congressman. as you know, we don't talk about our investigations. what i can assure you is that i am very close personally to that investigation to ensure that we have the resources we need including people and technology and that it's done the way the fbi tries to do all of its work, independently, competently and promptly. that's

assistant assistant director of the fbi. in charge of both counter terrorism and national security investigations you can't find a more ha author thai source on these subjects. meets with leaders, have a good time then for example in one case could you arrange photo with with me with mr. muriel fbi director. sure, i would like to you bring me some leads. and this leader said no, i could never do that i would lose my constituency. and in another case, the fbi found that there were two radicals who were actually expelled by a particular mosque. art cummings had met with the imam before. he never mentioned that these radicals. art cummings came back and said what happened? why didn't you tell us? the imam said well, you know, they weren't terrorists. they are just people who hated the government. there is this coverup mentality you see this in many institutions and government agencies. in this case we are talking about the security of thes country. >> so if the fbi is doing that, these outreach, these meetings, you say they are

. >> the head of the fbi testified. the fbi and apple are in a legal battle. >> we call the members of the media taking thousand pictures here to please clear a side so that we can begin the hearing. the judiciary committee will come to order. we welcome everyone to this afternoon's hearing on the encryption tight rope balancing american security and privacy, andprivacy, and i will begin by recognizing myself for helping statement. encryption is a good thing. our economic and military security encryption must play an ever-increasing role, and accompanies the development. a topic that may sound arcane far-reaching and lasting consequences. enabling robust public safety. particularly the wiretap, electronic communication and foreign intelligence surveillance act attempting to balance a valuable technological tool and injures the free-throw. nevertheless, as encryption has become a ubiquitous technique historically used to ensure a fair and impartial evaluation of the legal process. how do we deploy ever stronger, more eff

apple and the fbi both testifying on capitol hill yesterday after battling for weeks over the fbi's request to help unlock the san bernardino shooter's iphone. our next guest is one of many tech ceos coming out in support of it. >> thanks john. >> how do you imagine that the outcome of this case effect your business and trying to do it securely. >> yeah, so we care very deeply about this issue and certainly the outcome of this issue. we have always stood on the side of strong encryption which is make sure that you have it in transit and at rest and, in fact, we actually introduced a technology last year and a major update earlier this year that lets customers manage their own encryption keys to avoid this very issue. so we have been investing in technology to ensure that our customers have control of their encryption keys and of their data and we think this is a very complex issue. we think that there's many different stakeholders optimizing for more important causes that we're sympathetic to. it's strong and secure security for there to be a deep level of trust in cloud solutions as well a

and it's not just the fbi. i 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

the fbi is trying to figure out if the hackers want a ransom to restore the system. medstar says there's no immediate indication patient information had been stolen. >>> a slowdown wall street as some european markets were closed for easter. the dow gained 19 points. the s&p was up a point, ending a three-day losing streak. and the nasdaq finished 6 points lower. >>> campbell's soup company says it will stop using a potentially hazardous chemical known as bpa to line its cans by the middle of next year. bpa is a component in metal can coating. it protects food from directly contacting metal surfaces. some studies indicate it poses a health risk. campbell's began using cans with lining made from acrylic or polyester material. >>> low-fare airlines start-up virgin america may have a new owner by next week. it put itself up for sale. bloomberg news reports the airlines in discussions with at least two potential buyers, jetblue and alaska. virgin flies throughout the u.s. and mexico. >>> and old spice deodorant is a subject of a class action lawsuit. it says hundreds if

for now, the fbi says it wants to test this idea to see whether it works. if 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 o

fbi meaning 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 security of the country. >> and if the fbi is doing that, and the meetings of having a good t

you care about this if you care about your privacy, terrorism, you care, apple versus fbi hearings, fbi director james comey heading into our 3 of testimony stating his case why apples should have the did terrorist's iphone for law-enforcement. jo lin kent is on the case to monitor every word coming out of this. >> apple, the fbi wants apple to take the vicious guard dog away so they can access the phone in the san bernardino case in which 14 people were killed. we are listening to the latest of what he has to say. this is part of the opening statement. >> these hard questions through robust debate, the fbi job is limited. we have two jobs, the first is to investigate cases like san bernardino any use tools that are lawful and appropriate. the second thing it is our job to tell the american people the tools you are counting on us to use to keep you safe and becoming less effective. it is not our job to tell the american people how to resolve that problem. the fbi is not an alien force impose on america from mars. >> a lot is happening since then and i want to bring that to you. coming a

the fbi was dismissive of that at the time. that'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

that's apple on the fbi. now, 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 pho

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

the good news here is the fbi broke the supposedly unbreakable code and we'll find out -- or the fbi will find out what 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. t

assistant assistant director of the fbi. in charge of both counter terrorism and national security investigations you can't find a more ha author thai source on these subjects. meets with leaders, have a good time then for example in one case could you arrange photo with with me with mr. muriel fbi director. sure, i would like to you bring me some leads. and this leader said no, i could never do that i would lose my constituency. and in another case, the fbi found that there were two radicals who were actually expelled by a particular mosque. art cummings had met with the imam before. he never mentioned that these radicals. art cummings came back and said what happened? why didn't you tell us? the imam said well, you know, they weren't terrorists. they are just people who hated the government. there is this coverup mentality you see this in many institutions and government agencies. in this case we are talking about the security of thes country. >> so if the fbi is doing that, these outreach, these meetings, you say they are

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

do they care more about the fbi interviewing her? when it get to the point fbi brings her in and somebody on her staff get indicted for this, they don't care, they don't care? >> no, i'll tell you why. she spent 13 hours, almost 13 hours on capitol hill, yet still voters in tennessee, arkansas, texas -- melissa: that is not indictment fbi. rich, hang on. in fairness, that is a political committee and it is easier to point at them say this is political witch-hunt. when the person on the other side of the questioning is politician. when you have the fbi coming in and interviewing folks, giving them immunity and possibly handing out an indictment, you don't think that's obviously a lot more serious? >> well, listen there is folks out there all across the beltway to want to put this cloud over hillary clinton but sadly this cloud has absolutely postively no rain. it is just a cloud. she continues to show over and over again momentum in this race is on her side. democratic voters, overwhelmingly the american people want to vote for her in

the other reason is the fbi has sought from apple and apple has cooperated and given the fbi the icloud back up. apple has turned that information over to the fbi. reseti made a mistake and the password on the icloud account so we do not have the very latest information from the account. the other reason is the fbi has sought from verizon, the carrier associated with the phone, the phone call and text messaging data from the phone, even for the period that is not covered by the icloud back up's. the fbi has quite a bit of information on what is on this phone already. i think this is not being brought to further this particular investigation but i think it is being brought as a test case, because the facts are so conducive to the issue that you talked about, the public opinion, does this is a very rare terrorist case, national security case. it is the kind of case that is most favorable to the fbi. at the same time, over the same period the fbi made a similar argument in a case in new york and a judge ruled they did not have the authority to ask apple to create a back door into the iphon

assistant assistant director of the fbi. in charge of both counter terrorism and national security investigations you can't find a more ha author thai source on these subjects. meets with leaders, have a good time then for example in one case could you arrange photo with with me with mr. muriel fbi director. sure, i would like to you bring me some leads. and this leader said no, i could never do that i would lose my constituency. and in another case, the fbi found that there were two radicals who were actually expelled by a particular mosque. art cummings had met with the imam before. he never mentioned that these radicals. art cummings came back and said what happened? why didn't you tell us? the imam said well, you know, they weren't terrorists. they are just people who hated the government. there is this coverup mentality you see this in many institutions and government agencies. in this case we are talking about the security of thes country. >> so if the fbi is doing that, these outreach, these meetings, you say they are

on capitol hill, fbi director director comey: still testifying -- fbi director comey still testifying. we are still awaiting testimony from apple general counsel bruce sewell. the stock has been climbing all day. apple is up 3.7%, along with other stocks in the s&p 500. it is time for the bloomberg business flahs. -- business flash. honeywell is no longer willing to do business with united technologies. there are antitrust concerns. u.s. sales declined for the fourth straight month. the german automaker is having trouble attracting customers after the cheating scandal. dreamworks ceo jeffrey katzenberg says his company would be interested in combining with paramount if they could find a financial partner to back the deal. his companyays doesn't need a merger partner. and tv investments in recent years are beginning to bear fruit. one reason behind today's market rally is u.s. manufacturing in february. it did shrink, but less than forecast. stabilization may be in the works. even if the data was still native -- still negative, that could still be the case. joe, it was -- joe: any time

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 c

as much as we respect the fbi. >> i think you for your statement of respect for the fbi. i appreciate that in their behalf. certainly i think the dialogue we were having as i indicated hopefully highlights i was really support the objective of protecting whistleblowers and every federal agency included the fbi. we certainly support protecting those who report within the chain of command. as you yourself yourself noted within the intelligence committee. our hope is to make sure that we retain the consistency of treatment on the intelligent community side for those issues also. i think you and your staff are working with us on those points. >> and i thank you for working with us and let me bring up one of those issues that was brought up in these conversations. one of the issues your department has raised is that allowing fbi employees to report wrongdoing to their chain of command could lead to too many complaints. what is wrong with too many complaints? you have a department of what 50,000 employees but you are the attorney general, you cannot know what is going on all ov

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

it's an fbi request for the phone system, the iphone, to be redesigned. apple has cooperated completely with the fbi as far as it can go with respect to this phone. apple does not have 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

fbi opened its investigation into her e-mail, in august. and "l.a. times" today reporting that federal prosecutors have started to consider interviews with clinton aides. they are particularred to -- expected to seek an interview with mrs. clinton herself but no word on when they might asker to to sit and talk on the record. this is running a little slower than the same slow course as fbi investigation of david petraeus. the fbi launched its investigation of petraeus in late spring 2012, they interviewed former cia director about 6 months later. petraeus, announced his resignation 3 weeks after that interview. the washington post reports that 1 47 agents have been assigned to the clinton investigation, that indicates how serious the matter is. the case, investigation, accelerated to avoid possible action close to the election we're told, but the fbi has to pick up the pace to avoid running into the peak of presidential primary season, or in to the democratic convention itself that is now just under 3 months away. er in circ, the fbi faces a dilemma,

so, sending the fbi out here for our community. it -- jubal us -- jovial. we are going to have a street party. >> the fbi says the building will be shut down for the day and is not saying what the investigation is about but the city has been drowning in debt and has been troubled paying its bills. a controversy in november was sparked by the firing of city manager steve shiver. office about the city's financial crisis. >> thanks to mr. steve shiver , justice has come. we are hoping the fbi brings this to a closure. this community has been suffering. we are one of the poorest communities in the state of florida. >> reporter: back here live at opa-locka city hall, you're looking at it guy agents outside the building. the fbi plans to be here for the day and urges anyone who has business year not to come today. the fbi is urging anyone who thinks he or she has been a victim of public correction to call a special number 754-703- 2000. >>> now to campaign 2016 and the stage is set. candidates will face off bankunited center at the university of miami. florida. >

and why is half of it from gsa and half of it from fbi? >> what we do know is having worked with fbi much closely -- very closely over the past year, having a good sense of their requirements, that's giving us a sense of what the costs are. just really how they're programming the space and how they plan to utilize it. and this really has been very much a shared effort between us and fbi. we worked intensely over the past year and it's part of the reason you're seeing the requests come from both. because this is a shared effort. as well as the number, itself, would be large overall and definitely didn't want to overburden either budget request. but at the end of the day, what's really going to tell us what we have for the project are those various pieces. what the requirements are and really setting the cost, ensuring we're receiving a full consolidation as part of this request and trying to both with the appropriations and the '16 funding and the offset of the value of hoover really bringing the project to bear. >> so do you have -- where

as john henry smith tells us, the fbi and police say that is not the case. >> reporter: the fbi has released video from inside of the truck lavoy finicum was driving in the moments before police shot him lead. >> go ahead and shoot me! >> reporter: he was the spokesman for the armed protesters whoing spent weeks inside a oregon wildlife reserve earlier this year. the police say the new video shows finicum goading them before reaching twice for a concealed handgun. >> i have confirmed that the six shots fired by police are justified. >> reporter: but their report lists a total of eight shots fired. oregon police say the other two came from fbi guns as finicum stepped from his truck. those shots missed finicum. now the justice department and the sheriff's department are investigating where those shots came from, and why the fbi didn't list these shots. >> i can assure you that no one from the director of the fbi down to each and every employee wanted this situation to end in violence. >> it was an ambush involving a roadblock on a blind curve along a lonely stretch of highway. my husband was m

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 la

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

and if not, how did the fbi do it? and in the end, after a prolonged battle, will there be anything valuable on that phone? here's abc's senior justice correspondent pierre thomas now. >> reporter: the break that allowed the fbi to open the iphone of one of the san bernardino killers came representatives of an unidentified company flew to washington for a secret meeting at fbi headquarters. they wanted to show fbi leaders they had a method for opening syed farook's iphone. fbi officials were hopeful. >> lots of folks have come to us with potential ideas. it looks like we now have one that may work out. >> reporter: the phone was secretly flown to the fbi lab in quantico, virginia. then, this past sunday, the attempt was made to hack into the phone. the fbi claims it worked and tonight, forensic examiners are attempting to exploit potential evidence inside. apple officials told me tonight, any suggestion that the company helped break into farook's phone are not true. and apple's ceo tim cook in recent weeks telling davi