Syria, air strikes as well. Part of its intelligence sharing with our allies around the world and part of it is coop race from Tech Companies in an age when it is a key start of the isis strategy. We examine our strategy to determine when additional step are also needed to get the job done. Thats why ive ordered the departments of state and Homeland Security to review the Visa Waiver Program under which the female terrorist in San Bernardino originally came to this country. Thats why i will urge hightech only Law Enforcement leaders to make it harder for terrorists to use technology to escape from justice. Now, the president didnt educate he wants a new law from congress, merely that he wants the Tech Industry to work with Law Enforcement, try to figure out ways to help them track threats without invading the privacy of customers. Obviously, thats an extremely speech, the lance to strike. President tried to balance the need for military action versus a softer approach in terms of our approach to muslims. That has generated a tremendous backlash from republican candidates who say the president s not doing enough, that his emphasis was all wrong, guys. John, thank you for that. This angle regarding Tech Companies is sort of what were interested in, john. What is a reasonable request . Does that change if we get more instances like San Bernardino . Its just been a really difficult position that Tech Companies are in. When there are revelations that the government was intercepts cisco networking equipment that was heading overseas, eavesdropping on it. Now, at this point, their business, just the very nature of it, is threatened by the idea that the u. S. Government wants to compromise the data of people who are not u. S. Sit steps. So its interesting, the language to me in his speech sounded like he was walking it back a little bit. He wasnt talking about a back door to encryption, he was just talking about, hey, help us out here a bit. Maybe this is the middle ground that hes opening up that weve been looking for. The question of a back door into encryption is really an open matter. They were basically, both obama and clinton speaking at the forum. She says two things. She says youre going to hear the familiar complaints. Then she said we need to put the great disrupters at work. She says basically some way well need access to these systems. These Online Companies will have to turn over information if they want safety. They said we need innovation in this area. The cia has a Venture Capital fund. And actually one of the highflying unicorns right now is the Major Company that works with almost every Government Agency to parse big data. We need to get access to this and Everyone Needs to innovate a little more around this stuff. The privacy argument gets tougher, we know this. Also the added question, less certain but the effect on traffic, the effect on growth, the effect on time spent. If people begin to believe these are platforms that are potentially tang rudangerous. I got to think at some point if the government does get access that they want to the flow of data that they want, they wont tell us, right. Well, if they figure it out, theyre not going to tell everybody, okay, were eating all your stuff now, so terrorists, move on, find some other venue. I think as the public, were in an interesting position now. Theres this request going out but i dont think well know how it gets resolved. Russo and the social contract always something under negotiation. Giving up certain freedoms in exchange for others. We do seem to be at a moment where people need to give up a little access just for the government to protect us. Also, the deal to take keurig private. An Investor Group led by jab holding for 92 a share in cash. For more on that, were joined by herb greenberg. Its good to talk to you, good morning. I saw your tweet this morning. You said, look, in every short name, the biggest risk is the possibility of a takeout. That was certainly the case here. It was always the case here. It was something we said when we initiated our coverage in june with the red flag when the stock was about 83. We said, you know, the risk is that somebody comes in, buys the whole thing. At that point, a lot of people thought coke might be the one who does that. I think that you look at what jb did today. You know, it strikes home, you know, how markets work. They see tremendous opportunity. I think the price surprised even the most bearish of bears who thought it could be acquired. It was a question of price. But look its an interesting transacti transaction. It will be interesting to see what they do with it. I think its intriguing that coke gets out pretty much without a loss. In their 10q, they were already setting the stage for possible impairment of their shares. Herb, are you so when you look at the Balance Sheet today, versus three months ago, i mean, are you having to look at it through a different prism . What do they see that others didnt see . You would have to ask them. They obviously see a way of bringing it all together. We saw it as a packager of coffee. We saw Green Mountain. We saw them having lost pricing leverage. We saw, you know, tremendous risk with cold product. We saw some accounting issues. But again, you know, in the end if someones going to come in and in low Interest Rate environment, do a deal like this, all the things we were concerned about, obviously become moot. Remember, jab is almost like a Coffee Private equity fund, right . They own pete coffee, caribou coffee. One of the big complaints in that dismal launch was it didnt take generic third party cuts. Maybe theres something that jab can do with all their various coffee brands to lower the cost and get that consumer friendly story turned around a little bit for them. You know what they can do, john, they can do what dell did, and they can do all of this that has to be done outside of the public eye. And they can deal with the pricing leverage. Look, theres a lot of capacity out there. If you look at for making pods and for others making pods. You can look at what tree house has been saying recently. Which is a competitor in the private label space. You can look at the pricing of pods and how its fallen so much. You can go to the Grocery Store and see the price wars there. Sometimes you look at these things and you say, you know, when its out of the public eye, suddenly no ones talking about it anymore. They can correct the call, if thats what is suggested. Suggesting that the cold certainly has to be in effect redesigned. They dont have people like you and me, you know, pointing out every twist and turn of the strategy. So, herb, watching short names or names too short the way you do, does this change at all your calculus, after dell, emc, now this, are you looking differently at companies that you think are having a rough time . Is this kind of a hazard for you thats always out there and you can never really consider it . Again, we dont short. We do research. Thats what i mean, youre just looking at names that people might short. Look, look, look, some companies have great cash flow, some dont. When there are fundamental flows, were in the business of pointing those flaws out. Most of the time, theyre not taken out. What i often say is a name on our list could also be on an activists list because youre all looking at it for the same purpose. Jbs not an activist. Jps coming along and seeing opportunity. Thats always the risk. I look at our group of companies we cover and, you know, when we write about them, well often say, on several of them, we said, thats the risk. Its an obvious risk. But Green Mountain is going to be acquired, good for them, and it will be its still an interesting one to follow as a private company, you know, just as we see the brand and the marketplace. As is dell, as you point out. Herb, its good to talk to you. Herb greenberg. Finally this morning, netflix content chief speaking at a Media Conference sayi rath billion on original content that spend 1 billion on secure ago movie from studios. He also says netflix will not enter into larger deals in the u. S. Anymore. Netflix currently down about 2 . He said the notion of saying i get paramount films just doesnt mean much. Its almost a commodity. Like right now on the weekend, you know, my wife and i, we got a couple kids so were often not going out. Were looking at a movie to watch. Its not like were expecting netflix to have a movie. Thats not why we subscribe to netflix. Its for the original content. Its for the kid shows, which are just a different bit of so even though we talked about the move from dvd to streaming as a big shift, i think thats a big shift in original content being the driver for growth. This is effectively vertical integration, right . They have full control over it, less exposed to reno goshations. Nobody wants to be in the position the Media Companies are with the nfl or large sports league. So this creates more security around them. Its a product thats working very well for them. Very smart comments. Amazing that ted is the most powerful man in the entertainment industry. You would have thought eisner or but its ted sarandos from netflix. Is it less expensive than getting movies the traditional way . Less expensive. Theyve gotten more influence. They also know what customers are watching. They can make decisions to fill in some gaps. Especially interesting is what theyre doing with marvel. Its not like theyre coming up with their own ideas entirely but theyre figuring out which ideas from marvels catalog, way in the back of their catalog, are going to work for their audience. Heck of a focus group having all those subs and all the data. John, good to see you. When we come back on this monday morning, more on the response to the president s speech last night and an update on the investigation in San Bernardino. Markets meantime struggling on the back of oil that is below 39. Year to date, west texas down some 28. 9 . Were back in a moment. Its official, i work for ge what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Victims are speaking out following last weeks deadly attacks. Investigators probing the shooters now believe the wife was the driving force behind the assault. Our jane wells is in california with the latest. Right inside the county government building, theyre having a News Conference. Its pretty emotional. People talking about coming back to work as county government finally reopens, although with higher security. This, as the city is mourning. People are planning funerals. Some of the wounded remain hospitalized. Security at government buildings will remain increased. Counseling service will be provided. Quote, all managers have been told to look for signs of stress among employees. There are many, many opportunities by which our good county employees will be able to come together as we begin today to move forward. What truly bothers me most is that none of the 14 who perished had a chance. We will get an update at noon from the fbi. Over the weekend, they raided the home of the man who bought the two assault rifles legally which somehow ended up in the hands of the killers. Meantime, syeds father tells a newspaper his son was, quote, upset. Lets let the sirens go by. We are in downtown San Bernardino. Telling a newspaper his son was, quote, obsessed with israel. As for tashfeen malik, called her a vocal and driven student, someone who liked to laugh, covered herself around men. She cant believe this is the same woman. They are saying that they have proof, but they are not shown any proof that she has done this. If they say that she died, then they have no proof shes the person who died. All right, well, Homeland Security secretary is tell iing us, quote, a pretty good system of detecting oversea s plots in their earliest stages. Domestically, its challenge, it could happen at a moments notice. Jane wells, thank you. Homeland securitys new terror alert system. Coming after the president sought to ease the publics concerns in that rare oval address office last night. Our success wont depend on tough talk or a bbandoning our values or giving in to fear. Instead, we will prevail by being strong and smart. Resilient and relentless. And by drawing upon every aspect of american power. Joining us at post nine this morning, former Homeland Security assistant secretary, its good to have you on. Some of these policy measures like visa waiver reform, people would call it closing the barn door after the horse is out. What can be done . What should be done . Youre right, its hard to detect terrorists coming into the United States but its even harder to detect them once theyre here. But since 9 11 what we have done, weve increased Security Standards worldwide. Weve increased security airport standards, cargo screening standards and even percent until screening standards. Because it is so difficult to find them once theyre here. Seems like there are a number of things the government can do short having a back door to encrypti encryption. They can know who you are, where you are, through credit card information, they could know what youre buying and perhaps get a lead on if somebodys purchasing a suspicious of course they could use cash. What is likely that the government can get out of tech right now short of the back door to incryption which doesnt seem like its something that tech wants to give . Lets look at this from the standpoint of what tech is currently doing. We know from ad sense and the different tracking mechanisms available on the internet today, you go to one site and youll search for a couch, youll find ten different ads on your web browser. The government cant do that. But the government is interested in knowing people going to radical sites and to places where they might be getting information about how to put a bomb together. So we want to track all those things. But thats within the domain of the private sector. So we need that information to us. The encryption problem is a big problem, right . There are encryption schemes out there that will protect any communication and make difficult for the government to get. If we dont have cooperation with the Companies Creating those technologies, the government wont be able to crack that. For those who argue a lot of communication happens on nonencrypted platforms, is that beside the point . No, we need every available resource for Law Enforcement. Weve got to be data driven. We cant be conclusion driven and then find the facts. And it might be one small piece of information, whether its open source or encrypted data that adds to that piece of puzzle. If its clear the u. S. Companies that have encrypted products are cooperating with the government, probably would be clear, i guess, if the encryption back door were discovered, wouldnt the sophisticated terrorist just use something that was created overseas anyway . Would this only catch the sloppy terrorist and expose the rest of the u. S. Population . Thats a good point. We need to have available to us every opportunity we can. People make mistakes. Linkages between people, communications, ill call you, youll call john. You might be encrypted between you and i but you might be open, i might be able to find that. Yes, we need to work with foreign partners to do the same thing. Quite candidly in many countries aaron the world, which is where technologies are being deployed, those countries have ubiquitous access to that data. Were making it more difficult on our own Law Enforcement. We need to put our folks on the same level platform. A lot of discussion today about how post9 11 some argue, country was unified in the response. Its not happening this time. Why do you think that is . Im not a politician. Im not a policy analyst. I think politics has a lot to do with this right now. In politics, you draw a conclusion, you look for the facts. In Law Enforcement, youre drawn to those conclusions based upon the facts you see in front of you. Theres a big difference. So while there might be a lot of rhetoric around this particular debate, Law Enforcement is heads down, looking for people, irrespective of political ideology. When somebody walkings in and youre at the point of the gun, you dont care about the political ideology, religious thinking. All you want to do is figure out how to get out of that situation. We need to be looking at all the facts that can help us identify people likely to conduct these acts. Its all crime. This just happens to fit into that. Okay. Guns is another issue. Shares of smith wesson breaking out today. Well save that for another time. Thanks for coming on. When we come back this morning, a former Top Executive at microsoft. Some strong words for Marissa Mayer and the leadership lessons over at yahoo . In the midst of a wicked selloff. Europes going to close in just about eight minutes. When squawk alley comes back. Keeping an eye on some of the gunmakers today. Smith and wesson up. Up 113 . Rgr up 67 , as sales of guns are driving some pretty impressive stock performance. Europes going to close in about four minutes. This is the price of oil we