Anymore. It will be a different world than where we are today and where we are in 2013. He was also careful to offer up words of praise for apple. Take a listen to what he said on apple. No demons in this dispute or the larger dispute. Apple has been very cooperative. He was offered by one congressman the opportunity to repeat the government allegations this week. Its part of a larger marketing decision. Comey did not take that opportunity to understand what apple is about here in this debate. You really just have to ask apple. He himself sort of held back there the opportunity to go after apple the way the government had gone after them last week. So an interesting evolving debate here. Yeah. A very interesting tone as well. Thanks so much for that. As aman said 24 hours remain for apple to respond to that court order. Tim cook took to abc to explain why he is concerned. Take a listen to that. We had no more information. The only way to get information at least currently the only way we know would be to write a piece of software that we view as sort of the software equivalent. We think its bad news to write it and we have never written it and that is what is at stake here. Joining us, former fbi assistant special agent in charge of cyber, now with the Corporate Investigations and cyber security, defense firm k2 intelligence. Its great to have you, good morning. I know youre not on the team here advising the tone of what comey should take but did this seem like a step away from the clash we have seen play out in the press . No, i dont think so. I think its, you know, director comey understands that this is a longterm battle. And the only way to do it is through the publicprivate partnerships. He doesnt want to make enemies with apple. They have to Work Together to cure this. This notion that theres an inherent limiting principle in the technology because of the way phones are continually changing. And the fbi specifically have been battling something they call the dart which is over the years aztec nolg develops and the regular tools they use at their disposal. We dont generally think of court orders or companies for people being optional but we have seen never a court order thats requiring or compelling a company to create something that it doesnt have and the danger of this when tim cook talks about it, the way you dont allow the risks that would be inherent in the software is to not create it. How wide is this here between the fact that this doesnt exist and the fact that apple would have to create it . How could government make them do it . In this instance we have to focus on this one phone. Thats what the fbi is asking for. For them to develop some software that will allow the fbi to break the pass code. Now we dont know if its a four digit pass code, six digit, multi. A four digit pass code versus an 11 digit pass code could mean years so with this specific instance we have to focus on this phone. Were not saying that apple is going to make software that can be easily translated to all the phones out there. We have to focus on this one instance and this, in my opinion, is a case of national security. Talking about a terrorist phone, possible communications with other terrorists out there. You talk about the four digits, 11 digits, part of comeys testimony today is were not the fbi you see on primetime tv. Kayla asked if that was selfdebrication or we overestimated their ability to hack into anything. What the public sees of the fbi is through tv shows and movies. The fbi and the government can only do with the tools that they have in their arsenal against the technology. In this instance there is no way that the fbi can get into that phone without the assistance of apple. No matter, no matter how long it takes . Youre saying its really it would be one thing if they said we dont need your help and its going to take us another year. Youre saying that cant be done. Thats for unlocking with the pin code. So they need apple to basically install something on that phone. Basically a new operating system. And then they have to sign it with apples digital key so that the phone recognizes that its from apple. It has to come from apple. That update will disable the security feature. The ten attempts before wiping and then and only then can the fbi then start using Computing Power to go ahead and try to break that. Obviously youre coming at this at the approach of the fbi. And see how they work behind the scenes. And when tim cook says i dont fear a slippery slope this is one. Can you see where he is coming from on that . In the end we have to come down on the side of Law Enforcement. Tim cook talks about the future and Civil Liberties. Well, for the victims of that San Bernardino attack. Unfortunately its out. We have to do what we can to identify further attacks and who theyre communicating with. So it is a slippery slope and theres no doubt. I think this battle is going to be a long one. And theres probable cause to believe that theres activity on that phone. So you sound like the fbis argument is we realize were saying its this phone but it could be a different phone next year after another attack in five years. It could be a different sort of request. Theyre not denying that, right . Theyre not denying it and theres no doubt that if apple is compelled or agrees to do this theres plenty of other jurisdictions that are going to ask the same thing of apple to do. Theres no clear majority of Public Opinion either in favor of the fbi or apple and we had wondered for years what would be the issue. What would be the event that finally bridged that gap. If not San Bernardino. If not 14 people dying, what is the scale of the event that you would finally break that gap . I dont think theres a better example than this. Youre talking about terrorist attack on u. S. Soil. And if an fbi agent had a search warrant for a home and gets into the home and has a safe thats locked. They are going to go back and get a search warrant for the safe. This is the same thing. Theyre doing an investigation. They hit a road block and need assistance to continue this investigation. The toughest question he has seen in government. I assume youd go along with that. Absolutely. Yes. I agree. This is something thats going to be decided through congress and i believe at the supreme court. We hope youll come back as the story continues to change. Thanks very much. Check on the markets, the dow has just gone negative. Its back across the positive line and its a fraction of a percent. 01 and the s p and the nasdaq are still negative. Oil a big reason that the market had been selling off in addition today at a that we got earlier in the morning. Well keep you posted on the moves there in. Salesforce with a nice gain after better than expected quarterly revenue. The stock is up sharply up 9 and shares of hp inc falling after a larger than expected revenue drop. Analyst expectations and you can see what thats doing down 7 . Best by shares after earnings top estimates. What to expect for the rest of the year. Will apples fight against the government impact the stock. And then netflix the sequel to crouching tiger hidden dragon premiering on streaming and in theaters tomorrow but youll have a hard time finding it on the big screen. What that means when squawk alley continues. For more on best buy lets bring in our retail analyst at jp morgan. Its easy to look at the stock being up today and say maybe the quarter wasnt so bad but a large part of that was the capital return that the company announced. How are you factoring that . . Theres two things going on with the stock. Youre seeing a lot of this heavily shorted on stocks. Squeezing up and theyre out performing. The second is the capital allocation. They brought back more than expected in the Fourth Quarter and they announced the increase to the dividend and then yielding at about 3. 5 . Whats your interpretation, chris, of how the quarters sales went . We did see same store sales dropping just shy of 2 for the quarter despite the fact that holiday sales were actually pretty good and now best buy says were not even going to do holiday sales anymore because january is so important and you have head winds because of the mobile business. The ooirks phone 6 wasnt good for them. You see the tv business which reflected positively in 2014. Now and tv went from negative to positive. And its the concern we have as you look at the upcoming year. Chris, every retail report card seems to have a big line in there online. Up 137. Is that traction . What is the big line on what is traction now . If you look at on average online sales across all the categories and theyre growing in the low to mid teens so for best buy thats pretty good. Theyre growing in line with the market. If you look at their overall penetration, about 11 of their sales are actually online. If you look at the industry and its a great job and very Good Management team and really establishing it online and competing against amazon so theyre slowly and gradually getting to where they should be at this point today. So as they shift and become more of an online retailer, do you think thats the issue and that people just arent as willing to buy Something Like a phone or a tablet that you cant hold or play with in the store. The bigger issue is just what happens with Product Adoption phases. You have tablets which are down for the industry and in the 30 range in 2015. You just havent had the innovation from apple to drive a replacement and simultaneously you had Something Like with the iphone where iphone 6 was, you had two different sizes. You had a big adoption phase and this past christmas it was really difficult for them. Its highly uncertain youre expecting a back half recovery and theyre expecting the back half recovery and thats highly dependent on apple putting something compelling on the iphone side and tablet stabilizing and maintaining share in tv which is the hard part. We know that cycle is about to ramp up. Well see how best buy fairs which is also the ties of the morning. Chris we appreciate you joining us this morning. Thank you. Up next, as the apple story rolls on, many worrying about security everywhere and that includes public wifi. Well talk about that with the ceo of gogo. The company that powers wifi for a ton of Different Airlines when we come back. Plus the sequel to crouching tiger hidden dragon hits theaters and netflix tomorrow. Wont be so easy to find on the big screen. Well tell you why that is when we come back. A recently dropped lawsuit from American Airlines and a story highlighting the vulnerability of service in flight. What is next for wireless in the skies . Michael is the ceo and joins us this morning. Its good to have you. Good morning. Glad to be back. Good to be here. Quarter got overshadowed by this american lawsuit. Now dropped. Where does it stand now. The relationship between gogo and america. We had a great relationship. Actually our customer in 2008. Where it stands is we are going down to dallas to prevent them an offer for our new solution. This is an open solution. We think its the solution that best captures the rapidly falling cost and improving bandwidth in our industry and were excited to share that with them. When you have to explain to people the reason for the dispute, what do you say . Its very straightforward. It wasnt adequate for some of their larger aircraft that flew more distant locations and they need to do an upgrade. Its very natural that american would consider all of their options and want to make the smart choice and well be in there saying why gogo has the best plans for the future. Its what we have for tomorrow and our open solution is the right answer talk about how that in with facebook putting drones in the sky, theres a lot of Big Companies trying to tackle this very problem so you guys either need to innovate or the fate of your company is going to fall into one of their hands perhaps. Thats the interesting thing what we mean is our satellite antenna are open to work from many of the satellites from many of the worlds leading companies. What we want to do is harness that innovation of others and well work with whatever the solution may be. Theres constellations and even balloons so our antenna is ready to take advantage of all the various innovation. In terms of longterm growth Everybody Knows the forecast for commercial aviation around the world. Its amazing how many more people will be flying in 20 years. At the same time you get a story today like this one in usa today about the reporter working on a story on a plane. Turns out someone was able to see his information. How much are you going to have to fight the perception that youre activity while in flight is not safe . Security and privacy are huge issues. We run a wifi hot spot and we actually enable vpn so people that want to have an option and increasingly websites are going to secure and help the situation. We do everything we can to maximize security and privacy in our offerings. And what about Customer Service to that same effect michael . Because theres still people who feel that in 2016 if they board a flight they pay for gogo. It should be work and it should be past the entirety of their trip. In a lot of cases thats still not happening. Absolutely. We pioneered this industry and the solution we introduced in 2008 is now at capacity and is not as past as anybody wants so were introducing the next generation and we will move to the world of affordable bandwidth. Who has the best solution for the future and we are saying 2ku is the answer. Finally is the sweet spot of growth coming from short haul versus long haul . International versus domestic . Where are you seeing the most growth . Yeah. Were seeing it everywhere and, you know its hard to find a spot on the earth where people dont want to be connected or in the sky and it really doesnt matter. Were actually these days doing a whole bunch of regional jet installs. It just happens to be the case but our backlog is increasingly global aircraft but its just a matter of time until all the worlds aircraft are connected. How many years are we talking . I think five years from now it will be hard to find an aircraft on a Major Airline that isnt connected. Ten years from now it will be hard to find an aircraft anywhere that isnt connected. Thats amazing. Good to see you. Thank you for shedding light on the quarter and the recent news developments. Thank you. The sequel to crouching tiger hidden dragon hits netflix tomorrow but it wont be so easy to find it on the big screen. Julia joins us to explain why exactly that is. Hey, kayla. Good morning. Crouching tiger hidden dragon sword of destiny will only be shown in about a dozen imax theaters. In 2014 netflix announced what sounded like a Ground Breaking deal. Teaming up to produce the sequel. The plan is today beau it on netflix and a limited number of 400 theaters. And cinemark and carmike wont play it nationwide. The vast majority are joint ventures with the chains. The idea is it undermines the theaters business to accept films that are not exclusive to Movie Theater screens and they dont want to set a precedent. Still theres questions about whether these big chains are leaving money on the table. Back in 2000, crouching tiger hidden dragon brought in 128 million in the u. S. Its the highest grossing foreign film ever at the u. S. Box office and in china where netflix is not available the film did have a wide release and grossed 21 million in its opening weekend. Now meanwhile, imax may wish it had a little bit of an extra box office boost this weekend. Shares are down sharply after weaker than expected earnings after the bell. Back over to you. Julia, thank you so much. When we come back, we have talked a lot about apple today and this fight against the government but is the case having any actual impact on the stock . Right around 96 this morning. Gene is going to talk about that element of the story when we return. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Spanish Police Arrested a man in spain accusing him of promoting islamic militancy via social media. The arrest comes after a joint operation by police earlier in the week that detained four people. North korea state tv airing video of a banquet helped to celebrate the countrys successful rocket launch earlier this month. It featured kim jong un and his wife cheered by officials as they entered the banquet hall. Several packages of raw nuts could be recalled. The products were sold between july 2015 and february of this year. No illnesses have been reported. And jcpenney is slashing prices all the way down to a penny. Recently launching its get your pennies worth marketing campaign. Theyre looking to get much needed foot traffic into its stores. Thats our news update at this hour. Lets get back to squawk alley. I cant wait to see the margins on that. Thank you very much. Lets bring in simon hobbs and get europes close. German dax, the best day in a week. Its a real good finish at the moment. Check out the figures on the screen. Green, descent bounce back and a lot of it assisted by the fact that oil, brent, as far as the europeans are concerned rose at about 4 00 our time yesterday. They had some catch up to do but its broad based as you can see. Meantime you have had an inflation figure come out for the euro zone. A downgrade on where we thought we were to 0. 3 year on year for the euro zone. If you look at where Energy Prices is going its likely that will be flat next month and a negative headline figure for march. It all feeds in of course to the idea that the ecb will be aggressive with, people hope, a super bazooka when they meet two weeks from today. In this environment you have a continued very strong rally on sovereign debt and everybody is in on that apart from the short end where you have negative rates. The prices continue to go up. The yields continue to go down and you see the yield now on the german bund at 13. 8 basis point which is is not very far from the five basis points we had back in april when bill gross called it the short of a lif