Back here, he cofounded aol ventures. Another 106 million. And 100 point loss of this morning and first up its apple and apples counsel was on this program and criticized the governments rhetoric. We are working on a replay to the government right now and i think that there is some disconnect between the rhetoric we saw in the justice departments brief and what you heard from the director and president obama about the fact that this is a policy issue. And work through as a policy matter. And got a little bit carried away with rhetoric. And the government can make the appropriate modification to the ios to get what they need. Backdrop of all of this is Morgan Stanley saying. I expect the up roar across tech land to be like nothing we have ever seen. Can you imagine them demanding the source code for windows for demanding googles algorithm . All of the crown jewels of these Major Companies that they protect so fiercely, if they go after ios source code oh my i cant even think beyond that. A lot of other interesting stuff. Morgan stanley, yes. Iphone poimportant, but source code. Where ever you stand on and if you didnt own an apple product before, if you didnt have that before its just more secure. Theyre fighting for maintaining the security of the system itself. So i think for consumers there is definitely to apple beyond sort of protecting their property theyre also telegraphing to consumers, look, this is good for you. Source code plus sign in key is the posturing here. It feels more palatable in the negotiation. So percentage likelihood that happens. Approaching nil. I dont think its going to get that far. There was so bipartisan backlash against the fbi when this was front of the Congressional Committee a couple of weeks ago and they were talking about this being overreaching what the government is asking for now, if they want the crown jewels from all of tech land, and it will allow us to do our jobs to keep the country safe from terrorist and criminals and fine, maybe this isnt the solution but you need to come up with one. I think thats what theyre also saying between the lines there. You pointed out this morning stocks up 11 in a month and now Morgan Stanley looking for 56 million iphone units or implied guidance of 52. If you look at what the s p has done since its february lows an 11 move isnt that impressive. Its in line with the market but apple had been underperforming up into this point so when you keep that in mind, look at apples chart. How it dipped down into the 90s and stayed there and then you look at this iphone demand reading out of Morgan Stanley. Does it matter that much . Were mid cycle. Late in the cycle on the 6s and 6s plus. Were already starting to talk about iphone 7 rumors. Will it have that head phone jack or wont it . A bigger camera . What sort of features might that allow but still a little positivity at this point when were talking about apple fbi it doesnt hurt. Especially on this product. Fast company did a piece. Used to talk about whenever apple came up, right . Not legal jargon, product. Well, look, 56. 5 million iphones ship every million is 640 million in revenue so pretty material there. I dont expect a huge announcement but i think we might see the ability to use multiple watches with one iphone. Maybe some advancements in apple maps which would be terrific but i wouldnt expect ios or apple watch. Does monday feel big or not . No, it feels biggish. Ill put the ish on there because its a step up announcement. Other devices, sort of incremental improvements and for some people that might make the difference in terms of what that i wanted all along. Monday is big for investors and i expect to see this iphone se. The first time apple is coming out with a lower end product thats more targeted toward emerging markets. They aged down the older iphones. Like hand me downs. Like your older brothers close. Yes it feels like theyre redesigning in essence the 5s at least in terms of screen size. Giving it rounded corners a little bit more like the six has had and upgrading the processor so people will be able to use the software that the rest of the world is using. I think that was exactly right and thats where android has won a lot and market share is at the lower end because i cant afford the nicer thing but if this is good good price. It matters in india and china with the middle class. In addition to emerging markets you have to remember that between 40 and 50 of the people in the u. S. Are still using iphones that are two years old or older so you have the engine of a 6 with the price point of a 5s which we hope and think will allow more people to upgrade. And meanwhile a large number of dell fwats at stake today. Five States Holding their primaries. Swr john is in washington with more on that. Republican hopes of stopping donald trump from getting the republican nomination this year now rest with one man. If he can follow the polls and hold his lead and sustain in this race beyond tonight. I know my daughters are and my wife. I will be however forced Going Forward to talk about some of the deep concerns i have about the way this campaign has been run by some others. By one other in particular. But today is not the day to do that. Look at these delegate numbers. Donald trump has a lead. Not quite 100 over ted cruz. The polls show him way ahead of marco rubio. Republicans need to try to stop him from getting that majority on the democratic side. 200 delegates behind Hillary Clinton. He has to begin making up that ground and to do that he needs not just to win states as he hopes to do in illinois and ohio but he has to start trying to grab big blocks of delegates. Republican side has winner take allstates and the democratic side does not. That means even if he loses she can maintain her delegate lead Going Forward guys. Well be talking to you soon. Speaking of the election, elizabeth homes, the ceo of the blood testing start up is hosting a fundraiser for Hillary Clinton. Josh is in San Francisco with the latest on that, josh. Well, carl, Hillary Clinton has been under fire from president ial democratic rival Bernie Sanders who has been saying she is too close to corporate interest so the fact that the Clinton Campaign is now supporting a fundraiser by the ceo he ceoelizabeth homes has people scratching their head. She will host a fundraiser for the president ial campaign in the companys headquaters in palo alto. Clinton herself will not be in attendance but the event includes a conversation with Chelsea Clinton and participants that paid 2,700 to attend a host reception with chelsea. Holmes has come under scrutiny. Once the darling of Silicon Valley, she finds her credibility under attack. The wall street journal has reported that the 9 billion company is not the successful blood testing medical pioneer it portrayed itself as and remember earlier this year, inspectors from the centers of medicare and Medicaid Services said that a lab operated in california posed what they called immediate jeopardy to Patient Health and safety. It made personal changes in providing Additional Support to the lab. Its worth noting that theranos boasts a board of directors and counsels and a whos who of power brokers and neither clinton nor theranos responding to our request for comment. Guys, back to you. Thank you for that. Im curious how you guys are thinking about the intersection between tech and politics right now. No, thats a great question. Especially now more than ever with the election heating up and also with issues like privacy with apple versus the fbi and microsoft and google have been power houses there but in general theres a big disconnect between what they need to understand. Conversely, same goes on the other side. For people in d. C. Theyre not necessarily understanding how a lot of the start ups work or the Politics Around how things get funded. Whos hot and who is not. That kind of thing. This is a clear example of the disconnect. I think journal reporting has been spot on. I think its been really good and the concern is that shes selling snake oil, right . Certainly. Did you guys see john oliver this week and Lindsey Grahams uturn on apple privacy. A lot are getting briefed late in the process. Late in the process. These are complex issues and more complex by the fact that some of these technical things, a little thing here and little thing there makes all the difference for the product or consequence of the product. Getting up to speed on that is difficult. Good to see you. Thank you so much. Covered a lot of ground. Indeed. A check on the markets right now. Trading dow is about flat. The s p down about. 5 and the nasdaq also having difficulty around. 5 . Valeant shares down 43 after reporting an earnings miss. Also reporting guidance for the year. A stunning move and were also keeping an eye on oracle. That stock off a fraction. The company is expected to report after the bell today and guidance will be key. Their big quarter is what theyre guiding to and that may quarter after that report but the question is what is enterprise demand going to look like Going Forward for the rest of the year and how the crowd changed the equation as far as how their earnings and revenues flow . Well see what they say. Google is heading to the hill today. Lobbying senators to get more Driverless Cars to the market. Me dpgan smith, the chief technology for the country and fighting isis online but after the break, the governor of texas live from austin where south by southwest is underway. Were back in a moment. Thank you, john. We are joined by a very special guest today. Texas Governor Greg Abbott who has endorsed ted cruz, senator from the state of texas who you worked with personally for five years with so many important primaries taking place today and the polls the way they are, do you see a path forward for cruz . I do. First i did work with ted cruz. He was my solicitor general so i know ted cruz behind the scenes. Hes aman of commitment and courage and conviction and he would do a fabulous job as president but heres the pathway forward and that is if he can win additional states and if the states are divided up tonight based upon the election outcome youre going to see a contested primary all the way to cleveland. Well, the math is still too early for this reason. We dont know what is going to happen in missouri and North Carolina and others but ted cruz is only about 100 delegates behind donald trump and theres a long way to go. Its like saying in a Football Game well one team is behind by ten points at halftime so the game must be over. Weve all seen you can come from behind in the last half of the game. If after tonight the race is down to just two candidates, ted cruz and donald trump i think ted cruz has a very promising path way forward. In the senate and in the party himself you know him personally though. Im curious why you think he would be the right leader for this country despite the favor b favorability ratings. He when to the United States senate and stood on principle doing exactly what he told the people of the state of texas he would do. When you hear ted cruz tell you hes going to go to washington d. C. And do something you can take that to the bank. When people cast a vote today or whenever for president they hope the person will live up to the promises they make. When i vote for ted cruz i know hell live up to the promise of true conservative values. The American People are in favor of building a wall on the border with mexico. Your state has 2thirds of that border. What happens in a year. I have news for you. We have a wall down there. Texas has more than 1,200 miles. Much of it is protected by a wall. There are gaps in the wall. It was a true waste of money so you need to have a genuine wall. But also the reality of what we have seen in our efforts is you have to have true Law Enforcement down there to ensure that people are not coming in illegally. The fact s Barrack Obama and his administration have opened up the gates to these people coming in to the United States. And until they staunch that flow theres going to be a problem. I believe our colleague has a question back at the stock exchange. I do. Thank you governor and welcome. My question has to do with the overall republican pact Going Forward. He has to have a very strong position as you pointed versions dond trump and and they will support him as soon as possible. Are you comfortable with the whole field of republican candidates including dond trump so that you will endorse which ever one ends up being the nominee . Yeah. The answer is absolutely because theres a choice, whoever the republican nominee is going to be, theyre going to be running against Hillary Clinton and we view Hillary Clinton as being disastrous for our economy, for the future of this country and i know that any of those candidates that are running on the republican side for president will be far superior for the future of america than will be Hillary Clinton. Our current president , president obama was here and apple and the fbi and to mover here, where do you fall in the battle that appears to be drawn between strong encryption and Law Enforcement. First about apple tying all of this together, were proud, apple this year is going to be opening up the second largest campus in the world right here in austin texas so they have a huge presence here and were proud about that and i think that this whole issue is going down the right pathway and that is that this is an issue for courts to decide and maybe potentially for congress to decide because this is a novel issue. When the founders write the Fourth Amendment they had no idea that we would lead to this type of situation so this is a very complex legal issue. There are facts about what is going on. About back door and all of that kind of stuff and i simply don know the details of. Which outcome are you more confident in . That the Supreme Court would reach or congress would reach . Im on the side of people being able to weigh in and set the policy of this country. Im against rewriting what the policies are and the constitution is. So ill always favor the side of the people. My hope is congress can do it but heres the deal, theres certain facts behind all of this that i simply don know. I havent been able to follow details about what the fbi has access to and what the fbi can do with regard to writing their own software where they can find out this information. Youre actively trying to diverse identify the texas economy away from energy but certain places are heavily leveraged but i just want to ask you about your outlook for recovery in the price of oil with cities like mid land reeling from wti which is at 36 barrel. Sure. Jobs continue to grow in january, we reported a net new 31,000 jobs. Jobs will continue to grow here in the state of texas. Every decade of my life we have seen oil go down and we have seen oil go up. Its pure demand and supply. Once demand and supply get leveled off oil will con to go back up. Were dealing with a consequence of the innovation that we have seen in texas. Its a texan that came one the fracking that lead to the decade. Thank you so much for your time today. Back to you. Thank you so much. Senate is holding a hearing on autonomous driving vehicles later today. The google executive that heads up the selfdriving car program is heading to the hill to testify. Well get you all the details on that in a moment. 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. Its really a remarkable story. The guidance came in way under peoples estimate this morning and as they held the call which lasted for two hours things seem to be getting worse and now youre seeing analysts coming out saying this has been a very humbling call for them. They are finally downgrading the stock from neutral to underweight now. Basically calling valeant a broken company with no easy answers. Mike pearson returning is the first time he has addressed the public and wasnt able to reassure folks. There was a typo on some of their guidance for earnings for the next four quarters which they said it was different in the slides. People getting really worried about that. While it is going to try to cut costs as obviously revenues come down from where they thought it was going to be theyre going to try to beef up in areas like Financial Reporting and Public Relations and Government Affairs and compliance and things like that. A lot of uncertainty about whats going on here and wondering where the bottom is and they have been wondering for months now carl. And lawmakers are meeting on the hill today to discuss that very topic and phil has the details. John to answer your question the rules do need to change because not all of the federal Motor VehicleSafety Standards are applicable to selfdriving cars and thats why you have the Senate Committee on siensd transportation and commerce meeting today talking with executives about what rules need to be adapted from self