Transcripts For CNBC Power Lunch 20160323 : vimarsana.com

CNBC Power Lunch March 23, 2016

Item on my agenda than going after them and defeating them. The issue is how do we do it in an intelligent way. What has been working is the air strikes that were taking on their leadership, on their infrastructure, on their financial systems. And heres what we know. Identifying two of the suicide bombers in yesterdays attack, Ibrahim El Bakraoui and his brother khalid who blew himself up at the train station. One of the attackers still on the loose, french Prime Minister says European Union members must heavily increase their investment in antiterror measures. And there was another Police Operation near brussels earlier today. Masked police carried out bags and boxes from an apartment in the anderlick area of that city. Britains interior minister says donald trump was just plain wrong to say muslims in britain are failing to report suspicious activity by extremists. Earlier trump said it was a disgrace that one of the suspects behind the paris attacks had been found in an area of brussels where he had lived. Well continue our coverage on the latest in the brussels attacks at the top and the bottom of the hour. In the meantime, ty, back to you. Thank you very much, sue. And lets get more now on the unfolding situation in belgium. Michelle carusocabrera is live there in brussels. Hi, michelle. Hey, tyler. We learned john kerry will travel to bruce lz ssels on fri. The airport is still closed. It will be closed tomorrow here in brussels. As a result, we flew into paris and had to drive here. Along the way, we crossed the french belgian border where there are checkpoints set up for the manhunt that sue mentioned. Were showing you video of the german border, the same as well, as they continue to look for that individual. At the same time, while those borders are temporarily closed, because of this manhunt, there is increasing talk and more calls for those borders to be permanently closed. Many members of the far right, the euro skeptics, have long been against the idea that you could just move from country to country, that a country like france or belgium couldnt control its own borders. So the leader of the far right put out this statement saying, this emergency and for the safety of all, it is imperative to proceed t close immediately the French Belgium border, a real closure. And then in germany as well, we heard from one other individual a german politician from the right, who said the dream of a colorful europe is dead. Bombed away yet again. Finally accept it, it is time for change. That is a facebook post. So you can be sure that the discussion will be under way as to what to be done in europe that has prided itself on this european dream, open borders, Free Movement of labor, capital and goods and fighting nonstate actors using those very things to be able to conduct this borderless war against them as we have seen here in brussels and also in paris, back in november. What would a closed border mean in practice. Would everyone who is driving between those two countries have to go through passport control, have their cars, trucks, loris searched . What . Thats the idea, right . If you go back decades, there were customs at every border, you would have stops, big trucks. Wasnt necessarily traveling that much back then, but certainly you would have to have just an increased amount of individuals on the ground to be able to do stops, to do passport control. Marine le pen said if she ever becomes the leader of france, the first thing shes going to do is make france leave the euro and control the borders and close them off. That would presumably mean increasing the amount of security, military police, just police you have at the borders. It is also going to have a big impact on trade. That route we took today, tyler, hundreds, hundreds, i would say maybe thousands of trucks carrying products and goods across europe. The countries here are small. And so it would be much more efficient if there was open borders and if they continued. But on the other side, theyre viewing it as not safe and not secure. Thank you very much, Michelle Carusocabrera in brussels today. Lets move on now to a Big Development in apples fight with the fbi. The u. S. Is now reportedly working with an israeli firm to help the fbi crack into an iphone used by one of the San Bernardino killers. Lets get to josh lipton in our San Francisco newsroom with more on this developing story. Josh . Well, brian, israeli newspaper says a firm called celebrite, some 15,000 Law Enforcement and military users, the Company Reportedly provides the fbi with Decryption Technology as part of a contract signed with the bureau in 2013. The fbi did not immediately respond to requests for comment. Founded in 1999, it employs more than 400 people and is a subsidiary of the sun corporation, a publicly traded japanese company. In the wake of the San Bernardino attacks, apple fighting the doj over a judges order that it write new software to bypass the security of the San Bernardino terrorist iphone because apple says that software could be stolen, and this would set a dangerous precedent. Now if cellebrite finds a way here that it can exploit the government would no longer need apples help. Ben beheron says this proves apples point and encryption is a moving target and outsmarting the bad guys is no easy job. Apples lawyers do say that if the doj pursues this case, the company will insist the government reveal this alleged security vulnerability so it can be addressed. Brian, back to you. Josh, stay with us here. Lets also bring into the conversation don shimalski. Is the fbi snubbing the nose at apple saying we can do this without you . The fbi said even though it was pursuing apple in court saying this is an act of last resort, we need the information stored on this phone used by one of the attackers in San Bernardino, the fbi recently revealed it has been working behind the scenes trying to find some other solution. If the reports are accurate, neither the fbi nor cellebrite will say, they had a longstanding relationship with this firm, and theyre well known in encryption and forensics world for its ability to extract information from a variety of mobile devices including iphones. Without getting too technically in the weeds, dawn, talk to us about the idea ill call it memory mirroring rather than nand. Memory mirroring. What the fbi might be able to do. Yeah, this is we wont speak to the narrow geek world here. So forensic specialists yesterday put together an interesting thesis about how someone, the fbi or forensics folks, might be able to get around the password protections that apple built into its phones. And here is what might happen. Forensics experts are saying remove the memory chip from the phone, copy the contents of the memory, much like using a device that is not all that dissimilar from the old cd burners, we used to make duplicate cds. And this way you have a complete copy of the information that is on the disc. On the memory chip. So if you go and then reattach the chip to the phone, and then go about trying to guess the password. And if you trigger an erase feature after ten failed attempts, you can restore the information to the chip and restore it to its original contents and rtry to make ten more tries. Lets say this works in the case against apple is on the back burner, is this actually a win for apple, on the privacy side, but a loss for apple on the pr side because, hey, you know what, this other firm can hack the iphone. Well, i think apples point has been their First Priority here in this case, broadly to protect the privacy, security and safety of its users. I dont think tim cook ever said, listen, we cant stop outside parties, hackers, cybercriminals or agents from trying to break into our systems, they do try constantly and these are smart skilled men and women. All Tech Companies can say is, listen, no tech company would ever say their system cant be hacked. What they to say is when they are hacked, they try to prevent the damage as quickly as possible, put out a patch as quickly as possible. Thats why youre hearing apple lawyers say if this case goes forward, we want that patch. One question that i love to get from the fbi is if they do have this Real Security vulnerability, if they have a method to open this phone, are they going to share that . Share that with other Law Enforcement, are they going to share it with sigh vance in new york or international Law Enforcement. So a lot of questions unanswered. My question is sort of dove tails out of what josh was just talking about. That is if the fbi and this firm, if it is this firm, succeed in decrypting this phone, at some point in the not too distant future, dont we end up right back where we are today because some other Law Enforcement agency is going to ask for a way in. And apple, meantime, is going to change its encryption somehow to defeat the way in that this firm and the fbi found. Yeah, it is a cat and mouse game, where apple is trying to safeguard the device from any kinds of intrusions, either from hackers or others and the government is arguing that it needs to be able to gather evidence, to gather information regarding crime. So i think were going to see this continual process. Cellebrite has a number of clients including the fbi. And it will continue to evolve its technology to try to continue to extract information from devices. Meanwhile, apple and the rest of the Technology World will try to stay one step ahead, were going to have this continuing tension going forward. It is a company that is in existence to make money, josh. You have to wonder if theyre successful in breaking into this iphone, what will that what will that solution then cost on the open market . Really interesting. I was actually talking to chris sagoyan at the aclu. We heard about the mysterious third party, i was asking chris who he thought it could be. He did mention, sometimes u. S. Government will pay private security firms and pay them handsomely to detect these kind of security vulnerabilities. Chris told me that number could be in the hundreds of thousands of dollars, melissa. All right, josh lipton and dawn, thank you, both, appreciate it. Good discussion. Up next, another Big Name Company threatening to pull out of georgia over a controversial plan. The full details when power lunch returns. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. Welcome back to power lunch. Im melissa lee. Oracle is suing hewlettpackard enterprise saying they used third party support. Google unit winning a new key client as home depot signs a deal to move some of its data to googles cloud servers. Alphabet shares up a quarter of a percent. Credit suisse will implement additional cost cuts including the elimination of 2,000 jobs at its Investment Banking unit. Credit suisse shares are higher by. 6 now after a spike earlier today. News alert now on disney. And lets get to julia boorstin. Thats right. Disney threatening to boycott making movies in georgia if the state enacts legislation to permit discrimination based on sexuality. The media giant issuing a statement saying, quote, disney and marvel are Inclusive Companies and although we have had great experiences filming in georgia, we will plan to take our business elsewhere should any legislation allowing discriminatory practices be signed into state law. Thanks to tax credit, disney made a number of films including captain America Civil War in the state. The mpaa representing all the major Hollywood Studios already attacked legislation as discriminatory, urging the governor to not sign it. We have reached out to georgias Governors Office for a comment, but we have not yet heard back. Back to you. Julia, thank you very much. Long time republican political consultant mike murphy summing up what many on the traditional side of the gop believe. I think shes beatable, incredibly beatable. A huge opportunity. I dont think trump can do it. We got problems, but trump is not the answer. Hes poison. And the she there would presumably be hillary clinton. The lead over ted cruz expanded after last nights arizona and utah primaries. Trump taking arizona. Winner take all. Cruz taking utah. To john harwood in washington. As i understood it, going into these primaries last night, mr. Trump, to secure the nomination, needed to win Something Like 57 of all those remaining delegates. Is he on track after last night . Well, pretty well. He got 58 delegates out of arizona and ted cruz got 40 out of utah. So thats about 57 right there. But, look, Republican Leaders, as mike murphy indicated, are not happy with the nomination. Donald trump, they have a frontrunner they think is too divisive to win. Jeb bush has come out and endorsed ted cruz. But Republican Leaders dont much like ted cruz either. Ted cruz, of course, called his Senate Republican leader Mitch Mcconnell a liar on the senate floor. Super pac for ted cruz just in the last couple of days used racy pictures of Melania Trump from gq magazine to attract trump. Trump responded by saying hes going to go after cruzs wife. Cruz then called donald trump a coward. Paul ryan, the House Speaker today did the only thing he could do, which is give a speech and ask everybody involved to raise their game. Our political discourse, both the kind that we see on tv and the kind that we experience among each other it did not used to be this bad. And it does not have to be this way. Now that is likely to have the same effect as president obama who just made a similar statement at a News Conference in argentina, because neither president obama nor speaker ryan can control the candidates, they cant control what Republican Voters do, they also cant control the media, guys. John harwood, thank you very much. John reporting from washington. On deck, youre going to hear the word shangen a lot in coming days. Thats the agreement that allows europeans to travel among 26 nations without a passport. And now some are questioning or calling for an end to this deal. Were back in two minutes with more on that growing debate. The eclass has 11 intelligent driverassist systems. It recognizes pedestrians and alerts you. Warns you about incoming crosstraffic. Cameras and radar detect dangers you dont. And it can even stop by itself. So in this crash test, one things missing a crash. The 2016 eclass. Now receive up to a 3,000 spring bonus on the e350 sport sedan. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. We believe in the power of active management. Management, by debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Welcome back to power lunch. Lets check gold prices closing now, and a big driver of the trade and the commodities trade in general is the strength were seeing in the u. S. Dollar. Gold prices now 1223. 90 an ounce, down 2 . Were seeing losses across the board in terms of the metals complex with the biggest losses now in palladium as well as silver. Lets head over to dom chu with more. Whenever you see gold, silver prices, those Precious Metals move the way that you just showed, you got to check what is happening with the stocks that kind of benefit from them. In this case, were talking about the gold miners themselves. You see the gold miners etf down by 4. 5 . Off its worst levels today. Still a very, very large gap lower. These stocks have been on real up trends as of late, since the beginning of the year. Newmont down 5 to 7 . Big drivers here in terms of the met als trade. Winners in 2016 so far. But giving back a good chunk of the gains, huge gains for the year, but big move down lower here, down by 4. 5 for the major miners etf out there, gdx, melissa. Back to you. Big moves there. Thank you, dom. Now a check on the bond market. We had strength in the u. S. Dollar. Were having a bid in the bond market. The biggest move this is notable, in the 30 year and that yield is now down to 2. 61 . 96. 5 is the price on the 30year bond. Look at the ten year, where people are watching, thats the closest thing to Mortgage Rates there.

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