in cupertino, we're watching apple stock. apple a session lows. you're listening to live coverage of apples event in cupertino. they just unveiled a new smaller iphone. they unveiled new apple watch bands, potentially new ipad to come. the first thing that tim cook talked about on stage was apples standoff with the fbi, very important hearing scheduled tomorrow, where we are potentially expecting a ruling from the judge as to whether apple needs to comply with the government order to unlock an iphone used by one of the san bernardino shooters. i want to bring into this conversation and o'connor, ceo of the center for democracy and technology. now. us live obviously a very important day for apple to sort of set the whatahead of this hearing, do you think you're going to be seeing in the courtroom tomorrow? >> this is a momentous case, not only for apple but the whole tech industry. it will set the tone for how much government in truth and we are going to see in our daily digital life, wherever we are using devices. we don't be the judge will rule f

apple has a responsibility. it is being asked to communicate with iphones all around the world -- that is a first amendment right. i'm surprised at the attorney general that's he would should -- that she would suggest only people accused of doing wrong have first amendment rights. have a first amendment right and no one is accusing you of having done anything wrong. apple has first minute rights to protect its product, to avoid government compulsion of what it should have to say to its products in order to change the design of those products. it has a responsibility to protect the integrity of all of the people that have been all over the world who depended upon apple. use with respect to these phones -- you can imagine what a karen eckel government can do to individual privacy of individuals wishing to communicate with one another or their neighbor in private. we are talking about the rights of apple to make sure that it's iphone has the integrity that it carefully built into it. all of those are constitutional

emily: apple lawyer ted olson. we will hear more from olson on apple's legal strategy. why he believes the fbi's fight is a civil rights violation. next. ♪ emily: now back to apple's , impassioned battle with the fbi. we heard from apple's attorney ted olson today, and i asked him what he thinks congress needs to do next. ted: congress should do its job, which is to consider the various different alternatives and the thect on citizens, balance concerns of law enforcement, which we respect, apple has cooperated in every possible way with the government except for throwing out the design of the iphone and redesigning it. congress needs to consider what technological resources exist, what can be done by the government without conscripting private citizens to change the products they make, and things like that. there should be hearings, there should be expert testimony. they may have started yesterday, the testimony, not just from irector calmly of the fbi, have the most in or miss respect for him. a tremendous public citizen. we are lucky to have him. but the testimony f

see the techyou industry get behind apple. they recognize this is way bigger than apple. is a defining moment for tim cook. he can really put his stamp on the leadership and what he wants to do with apple. as a datary company company. what are the broader implications of this? been puttinghas the privacy stake in the ground the last years. they've made a part of their brand. if customers see them backing down, it will have an impact on apple's brand. if they see a company with apple , that kind of clout, if they lose, others will follow suit. emily: the new york times theyeers have reported will quit if this comes to pass. what happens if a judge orders the company to do this? what happens if apple engineers say, we refuse. tim: talk about complicating the matter. areets to the rift we seeing between silicon valley and washington law enforcement. we saw it happen after edward snowden a few years ago. , ithese engineers walk off is a complicated place. o'd, and very sil there are questions about how long it will take to respond bringing in the backbenchers. this morningest

it is a business decision by apple. icloud goes, the icloud is only obtained if the person selects it to be backed up. to phone cannot be backed up the icloud upon your discretion. you have to agree to that. you seem to know a lot about this. why is that? i amr: put it this way, very familiar with apple and their devices and i am intimately aware of law enforcement's concerns. only suspects we cannot access, it is victims. family victims whose members do not have access coats and are unable to give it to law enforcement. we do not know the intimate details of their family member'' death. this is a major issue. thank you for your perspective. eli dourado? guest: it is true that the verizon data is metadata and not necessarily the data. very often enough to follow up on new leads. they would know for instance who the shooter was texting with and so on. the leads are preserved to the verizon data. again, it is true that icloud backups are optional. apple walks you through a process when you set up the phone and the default

if governments like china ask apple to do the same thing, would apple do it? >> so this is actually a really complea verycomplex question. i think there's a lot of attended the sake apple can create the technical conditions and that would allow them to say no to other countries. nobody except apple and the chinese government know what apple's relationship with china is like. what the apple general counsel test of the estate is that apple has complied with chinese localization laws. so that means all data stored within chinese service. it's common understood that the chinese government maintains access to all data within china. google, for example, rather than comply with david localization laws elected to withdraw from that market. so while it's difficult to know, it's not, it's apples and oranges because the relationship to the date in question is very different. that said, certainly china is looking to what the united states is saying. certainly is operates, this offers you his company's abilities to negotiate with chinese government as sort of, they tend to

is it the apple tv? is it a car? is it owning the living room and doing something like the amazon alexa? gene: think about google glass, and the companies like google and samsung. sony. they have all been very vocal about what they are doing in this space. apple has been making some acquisitions and hiring people, but if you think about the window, it is this mixed reality, different from virtual reality, but this is going to be a paradigm shift in computing. apple needs to nail this to keep the momentum growing, and i think this is the kind of thing that keeps tim cook up at night. emily: interesting. horace, quickly, because i want to talk about encryption before we go. horace: i am still optimistic that the watch has a growth story to it. the margins are good. what we are talking about is an important part of the growth story. it is not just a hardware play, but apple is involved in making money in different ways and not just hardware, and that is a message they are putting out there. emily: tim cook on the world

apple did faced tough questions from the congressman from south carolina, wanting to know what apple's proposal was, what would apple agree to, and apple wasn't ready to say they would propose legislation at this point. emily: let's talk about the middle ground here. law enforcement and attorney general loretta lynch, we are about to hear her call for a middle ground. i wonder, is there really a balance between security and privacy on this particular issue? when apple says there is no middle ground, it is a slippery slope. >> the fbi would say there is a middle ground, that other companies are able to do this, but it's a business case for apple. that said, apple was talking createow they, if they this tool for the fbi, then others will want it. emily: tim higgins, bloomberg news reporter -- >> from there, the conversation was pointed into the technology and we had an expert talk about how really, what the fbi needs to do is generate more knowledge in the area and develop the skills to crack into these phones. not a lot of feedback on that from lawmakers. day, youhe end of the are heari

an apple device. and that is an iphone that's at the center or periphery, rather, of a methamphetamine case in new york city. susan, quickly tell us what is going on there. >> right. this is the case that you might have heard of over the past couple of days of a new york judge says fbi can't force apple to unlock an iphone. you might be sort of confused that there are multiple cases going on. this is a case in new york in the eastern district. what's really important to understand about that case is it is an ios 7. the difference is there's a number of detailed, technical differences in terms of how the device is created. the important thing to understand is that apple has the capacity to not unlock the phone but to bypass the lock capability and extract the data. they have provided that assistance to the fbi about 70 times in the past and declined to do so in this case and so they are challenging the use of the act to compel the kind of assistance at question. it's important to sort of understand whe

has responded to apple's motion to vacate the order to unlock the apple iphone. bernardinoto a san -- belonged to a san bernardino terrorist. they are extending the order. the court has the power to order apple to help unlock the iphone. these are headlines so far. it looks like it has delayed a step in the back-and-forth between apple and the u.s. government over this issue of what apple says is privacy and with the u.s. government says insecurity. -- is security. and we got news from apple today on the product side, march 21 is the next time we will learn about the newest in the apple products line. bonnie: a lot to happen in this case, in response to the initial court order from february 16, where prosecutors won the case requiring apple to help the fbi. and of course, we had the technology community chiming in. we want to go to the san francisco bureau, talk to an expert on all things encryption. corey, the fbi's response, does it have anything substantial? corey: the government is arguing in their response to apple, in a that theated inquiry, government is a

moved to throw their support behind apple. the fbi director james comey testify before congress, calling encryption the hardest problem i have seen in government. joining me now is max levchin. he is currently the cofounder and ceo of a firm at a financial and technology company. he is on the board of directors at yahoo!. thank you for coming. rather than asking a specific question, let me ask you a broader question. let me ask a broader question. we've seen this coming? tell me more. >> consider the fbi director comey has advocated for essentially backdooring encryption software -- that is built into apple and other systems. that is easy. but that is a terrible idea. there are simple things to it, bad guys do not abide by our laws, good guys will weaken encryption which bad guys will take advantage of. good guys will have weak systems and bad guys will use the strongest thing they can get their hands on. off, it will be better off. they will be better off. charlie: bad guys can be criminals and nationstates. >> anyone. anyone

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

right now he's talk ing about apple tv. 5,000 apple tv apps right now. and they're talking about the ecosystem there with video. we're going to continue to bring you the updates as they come from this event here in cupertino. back to you. >> look forward to it. thanks, jon. gold prices are closing now. let's take a check on where gold is settling out. 1244. 70 an ounce. green arrows across the board with the biggest gains seen in palladium today. >>> technology stocks getting a low start for 2016. there you are. our next guest has three tech names you should buy today and hold for the next 12 to 18 months. let's bring in brian bellski. brian, always good to see you. your three names are really unfamiliar to me. i've never heard of any of them. apple, one called google and then a third one, i can't even remember. it is so obscure. what is the third one? >> really obscure. i think our strategy has been for several years, we want to buy big brand companies that everybody knows, that isn't going to surprise anyone. remember, we're all still kind of waiting a

what is it about apple? why apple? tim: it is the people, charlie. we do have a little bit of money. we have some ip and so forth. it is the people that make apple. it is the people and the culture. is this veryere unique blend of idealism that anything is possible. that we can be bold. and a deep humanity. everybody here would like to change the world. we do that through our products. tools thative people make them do things or allow them to do things that they could otherwise do. that is the thread that ties this altogether. charlie: by? why because of the feeling? tim: that you get when you are making a difference -- altogether. charlie: why? tim: because of the feeling that you get when you are making a difference. after you get that feeling, you become incredibly selfish -- you never want to give it up. you know how special it is. i have never encountered it in other places. i hold it dearly. charlie: different mindset or attitude about products? ethos about perfection? tim: it is a different mindset. it needs to be insanely great. great, ity ha

apple does not know how that was done. they cannot be sure that hundreds of millions of iphone customers are safe from a similar attack. 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 theori

apple maintains that this is not one thing. throughening a door pandora's box of a lot issues that relate to privacy and the right of a company not to have to do the work of the government. you know so much about the loss surrounding security. your company operates everywhere. what do you make of the government argument versus apple argument. 'su think the government argument is stronger. michelle: they are still recovering lawyers. this is a really hard situation. it in the media. it is important to understand. on one side, the law enforcement agencies need to do their job. day americany citizens and need to have tools to do their job. everyone can understand that. apple represents a technology company, one of many. this isare saying incredibly personal. it has all of your personal information. security is fundamental to trust with people using our product and making our consumer lives better. we're not going to do anything to undermine the security of that phone. it is a hard balance to strike. you are seeing the crux of the

apple's help? >> this is a huge victory for the technology industry. they have stuck their neck out and basically said, we will support apple on this. this lets them in a good framework for newer cases to come as for which weight you can expect these companies to respond in a case like this. cory: what clever thing should i say about this story when it is a day old tomorrow? paul: that it really doesn't matter anymore because the whole story has moved to europe. that is where the action is with the legal ramifications about iphone in a access. cory: paul is sticking with us. thank you very much, we appreciate it. this is part of the dell i.t. division. $3 billion. that is almost $1 billion less than dell paid for it. why the fire sale? ♪ cory: sri lanka's government plans to turn the island nation into one big wi-fi zone. google's project beams down internet to remote areas from high altitude balloons. it could be cheaper than undersea internet cables. the government says it is working to blanket

it would remain in apple's hands and apple headquarters. emily: alex, take us into the bigger context in regards to the business. apple is predicting sales to decline. yet, all of these thing are happening at once. >> we had a piece that came out little bit earlier talk about the interest in apple. it has reached lowest since april 2012. that implies that perhaps, all of the doubts having priced. lot of people are expecting the stock have to recover. there is going to be a decline. lot of people are predicting that. the question is whether it's the first or second big step second big decline, where we are now. emily: all right alex webb and tim higgins and cory johnson. yahoo! add two new board members. we'll take a look. emily: former apple executive named coceo of bridgewater associates that oversees more than $150 billion. the news comes as investors look to cap stocks. ruben 17ruben will replace greggenson. now to yahoo!s to revolving door. the company appoint the two new directors. returning the size of the board to nine. the newly app

special access to apple device. and that is an iphone that's at the center or at the periphery rather of a methamphetamine distribution case in new york city. susan, can you quickly tell us what's going on? >> this is the case that you might have heard of over the past couple of days of a new york judge says fbi can't force apple to unlock an iphone. you might be confused that are multiple cases going on. this is a case in new york in the eastern district. what's really important to understand about that case is its in iowa's seven but the difference between an ios seven, there's a number pashtun ios seven. how the device is grid. important to understand is apple has the capacity to unlock the phone that to bypass the locking mechanism to extract the data. they maintain that capability voluntarily. they provide a service to the ios approximately 70 times in the past pursuant to an all writs order. they declined to do so in this case. they are challenging the use of the all writs act to compel the kind of assistance

good morning. >> apple pie sounds good this morning but stick with apple. big event taking place today and as kiet do was talking about the possible products we will see, not expected to be a big stock mover for the company. the smaller iphone 5 follow-up the 4-inch phone, mainly there to keep people in line with apple who don't want the bigger phones and the 6 lineup that we have seen and have been very popular. overall smart phone growth is slowing. the iphone in the recent quarter for apple saw its lowest growth and the company is expecting revenue to decline in the current quarter for the first time in 13 years. a newer ipad also coming in and ipad sales really have been slumping. they were down by more than 20% in the recent quarter for apple. the stock for the company is down about 20% over the past year, although it has been rebounding after starting out the year in a bit of a hole with the rest of the stock market. coinciding with president obama's visit to cuba, more opportunities for americans to travel to cuba. priceline.com announcing that it's

in fact, apple helped open -- joining me now is adam, who covers apple for bloomberg news. adam: there are a lot of things in multiple coast. in california, you have the case involving the san bernardino shooter and in new york apple is battling the government. it shows what operating system was on the phone in question. in san bernardino, it was software called ios 8. it has hefty your encryption. this one is ios 7. what the government is saying is with this software system, apple has the capabilities to do it, they have done it in the past, and they should be helping. emily: it seems the government should be changing its rhetoric because it is just this one phone they are talking about and now we know there are 12, 14, multiple phones across the country where the government is asking apple to do this. you think they are trying to point out the -- i don't know, the hypocrisy in apple's own argument? adam: they are trying to show the inconsistencies. they go back and talk about how as far back in 2008, when the original iphone came out, there were some cases involving some

include apple in it. get their help. do not say to the government you cannot have this, good luck with you protecting our nation. the constitution is not a suicide pact. it is a constitution that was built to defend this nation. if all of a sudden we are saying that we do not have to do this, i think we are in the wrong place. emily: is there a technical solution that actually is a middle ground? apple was being asked to create a key that could become a master key to all iphones. tim cook says it is like cancer for iphones. it will put everybody who owns an iphone, hundreds of millions of people, at risk. does that give you pause? >> what i would say is there a way to create a solution that can be held by a body or something that does allow the government and others to look at communications that they need to stop a terrorist attack? i would go to google, facebook, apple, ibm, the tech community. i would get some of the best experts in the world, and say can you come up with a solution? kid get folks like jeffrey stone,

in fact, apple helped open-- joining me now is adam, who covers apple or bloomberg news. adam: there are a lot of things in multiple coast. in california, you have the case involving the san bernardino shooter and in new york apple is battling the government. it shows what operating system was on the phone in question. in san bernardino, it was software called ios8. it has hefty your encryption. this one is ios 7. what the government is saying is with this software system, apple has the capabilities to do it, they have done it in the past, and they should be helping. emily: it seems the government should be changing its rhetoric because it is just this one phone they are talking about and now we know there are 12, 14, multiple phones across the country where the government is asking apple to do this. you think they are trying to point out the -- i don't know, the hypocrisy in apple's own argument? adam: they are trying to show the inconsistencies. about howck and talk as far back in 2008, when the original iphone came out, there were some cases involving some crimes where

like apple are making. but that the best protection in terms of both law enforcement and long-term security in the united states. >> that's right. i don't think there needs to be more authority but more view of how it needs to be done. there is authority in terms of how do you handle it for state and local but state and local do not have the resources. there is some sort of sharing in tools and that is a jurisdictional issue and also, you know, an issue between bureaucracies that have to work out and work out before law and policy. in terms of creating the authority, the fbi has that authority. but it useets it at a much lower level than it should and fund it at a much lower level and they need to move from the situation they're in to dealing with the 21st century technologies in the appropriate way. >> thank you, mr. chairman. i yield back. >> you bet. chair recognizes -- >> could i ask just one quick question, mr. sewell. i forgot when it was my turn. someone asked mr. comby about the changing of the pass

as for the apple watch, we understand that there's going to be a apple watch 2, a redesign with many new features, around september in the fall. but for now, we're going to see another refresh, sort of like the one we saw last year. new colors, new bands, new software features. it's going to be a light event, but there's going to be some refreshes across the three major apple platforms. emily: now, with regard to the encryption part of this debate, i was speaking with michelle, co-founder of cloud flair. take a listen to what she thinks is going to happen on monday. >> another way to look at this, there's a security vulnerability on the phone. apple's going to close the security vulnerability. and there's going to be an update in the future operating system where it's not possible. it might be right now, but that window's closing. and if i was a betting person, i think on monday at the apple event, the biggest announcement there is the update to their operating system. emily: so, mark, there's been talk of an unhackable phone. is that going to happen on monday? are we going to see a

that asks a question why is apple apple. we begin this evening with the ceo tim cook. >> it's the people and the culture. and the culture here is this very unique blend of idealism that anything is possible that we can be bold and humanity. everybody's fear wants to change the world and we do that through our product. >> rose: politics and apple when we continue. >> rose: funding for "charlie rose" has been provided by the following: >> and by bloomberg, a provider of multimedia news and information services worldwide. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: the 2016 presidential election could be remembered as one of the most bizarre and unpredictable in american history. a new series on show time seeks to capture its jaw dropping head scratching moment in real time. it is called the circus inside the greatest political show on earth. show time president david nivens says it aims to expose not just the nitty gritty about campaign work but al society peopl

that customer is the county whose employees lost their lives and they asked for apple's help and apple said we're not going to help you in this case so we're using lawful course process and a court order to obtain the information we need to answer all the questions about this case. >> the governments argument is its one solution, one phone, one time and apple's push back on this and we heard tim cook say if i write this software there's undue risk that that code could be stolen by hackers or cyber criminals or foreign agents and i could be putting millions of iphone users at risk. what is your response to that? we share the belief that strong encryption is important. we need to keep those safe. but at the same time in this particular case i believe that apple has the ability to technically assist. it will take a couple of weeks for them to do that. they say that's a burden. we'll see what the courts decide whether two to four weeks to try to find answers in a case where 14 people lost their lives is an undue burden or not. that will go to the courts but they can do it on site. we don't

by apple. had "an we haven't awful parade of [indiscernible] both sides are using colorful of language in this case. resubmit thet will new york case. that ruling came against the government and for apple earlier this week. thank you for joining us. we will watch out for more on d youd you miss -- "what' miss?"the close of trading 13 minutes away . the gains. vonnie: this is bloomberg markets. markets close in about 10 minutes. julie: march tens to be a positive month for stocks. nevertheless, this is a blockbuster start to the month by any account. we have not seen the highs we have seen today in quite some time. stocks bouncing back also sharply from the lows they closed at on february 11. if you look at what is rally today, you can take your pick in terms of the sectors. utilities are lower. but otherwise, everything is up. we haven't seen many big rallies without the participation of the two groups. individually, you also see the tech and banks represented. apple, microsoft, jpmorgan are co

the latest apple designed, apple-built chips. it could cost as little as 450 bucks. but i'm here with walt mossberg, who is the dean of this stuff. walt, if apple were to come out with a smaller phone, would that significantly impact sales overall, perhaps in emerging markets? and what sort of price would make a difference? >> well, you know, even $450 for an iphone is cheap. because, you know, an iphone typically sells for almost $700 at base. and i think it actually -- i don't know about the word significantly, but i think it actually impacts sales in two ways, jon. even in this country, and other developed countries, not even talking about developed markets. number one, there's a significant holdout from going to the bigger screens. the bigger screens, as we all know, produced, you know, giant blockbuster numbers for them. so clearly, they were popular. but there was a holdout. and it was a significant holdout share of the market. tim cook has said that as many as 60% of their users had not upgraded to the bigger screen. and even at the verge where we have pretty

take a look at the names that trade better than apple after apple releases. you've got microsoft, alphabet, intel and sewn, all more likely to trade positive and see better average returns, one week after the new release. now, if you thought apple anticipation was maybe greater than apple itself, think again. the past week has been a big exception. but the company tends to underperform in the week leading up to the release, as well. now it may be that it is typically taken a while for the market, and perhaps consumers to figure out what to make of the new product. because, i think josh you mentioned this, six months after a new iphone or ipad release, apple stock has been up 70% of the time. and returned more than 9% on average, which also, scott, made me wonder, when does -- when is a good time to get into the stock in terms seasonality. i thought maybe leading up to christmas. not so. trades negative 50% of the time so no better than a coin toss. >> thanks to you. jim lebenthal, why not sell the stock today? >> a lot of reasons. we already it talked about t

apart from apple, my alert opened up so the stocks are opening up. apple is number one. the problem is not the number of money they are bringing, it is the growth. has to do with more provisioning they are doing because of rising bad debt. let me show you very quickly here. let me open my charts. of 2015, we are roughly at $200 billion. i alluded to, it is 0.6. you have this later on, very very busy. rishaad: coming up, china is buying up big in australia. what is holding back any wave of investments? the markets are open in hong kong and shanghai. ♪ rishaad: a look at our top stories. asian equities dropping as many companies dropping. unemployment picking up and retail sales dropping more than 2% in february. mixed messages about a possibility -- possible rate hike. the owner of the sheridan weston and w brands says it has gotten an improved offer from china. married stock is dropping. stock is dropping. the doj says it has managed to access the data on the phone and no longer needs apple's help. authorities say they were approached by a third party with a possible s

moved to throw their support behind apple. the fbi director james comey calling encryption the hardest problem i have seen in government. joining me now is max levchin. he is currently the cofounder and ceo of a firm at a financial and technology company. -- me ask a broad question let me ask a broader question. we've seen this coming? tell me more. directorer the fbi comey has advocated for essentially back during -- yption software that is a terrible idea. there are simple things to it, bad guys do not abide by our laws, good guys will weaken encryption which bad guys will take advantage of. will have weak systems and bad guys we use the strongest things they can get their hands on. that is easy. emily: bed -- charlie: bad guys can be criminals and nationstates. >> anyone. us will have hurt knowledge that we have weakened our systems and enacted laws to make sure everyone uses those. you can make the argument that will be safeguarded with legal protections, but we have seen what happened with the break-ins from target to the

government attacks apple on two fronts. did they puncture a hole in apple's argument? ♪ david: the apple versus the fbi debate is heating up. at a security conference yesterday, loretta lynch tried to shoot down apple's arguments. >> in the present we have seen how we do in fact balance privacy and security every day. until recently, apple was able to comply with our request. and they have some of the stronger security out there. we have not seen that parade of horrible -- consequences in those cases. david: joining us now is tim higgins from washington. he has watched part of the hearing. tim, this was billed at the shootout at the ok corral. was it that dramatic? tim: there were some elements of great drama. tow wo giants going at it. the government is arguing that apple is creating forantless faces, havens terrorists and criminals and that we as a society shouldn't let one company decided that is where we want to have going forward. youd: josh, i want to bring in here. is this as big a deal as people are making it out to be? josh: i think it is a big deal. what yo

what makes apple apple. tonight a conversation with tim cook, the ceo about new products including the apple watch. >> the apple watch. >> yes. charlie: is that your baby? >> is it my baby? you know, there were lots of people that had a lot to do with. i absolutely love the product. i'm all in on it. i think -- i talked to a kid a few weeks ago. senior in high school, that got a watch wearing it during football practice, noticed that his heart was elevated. most ever us don't wear heart monitors, you put a strap across your chest, nobody wants to do that. he happen to see that his was a bit high, 140. he mentioned to the trainer. you begin to see the power of what wearing something -- this is not one person that i know that found this. it's now many. between that and the motivation of tapping every hour so that you become more active measuring your 30 minute of exercise or whether you're achieving active calories. these things are incredibly motivating. you don't really wasn't to let yourself down, so to spe

apple made a very spectacular request publicly for apple to -- the fbi made a request publicly for apple ii unlock the iphone in the san bernardino case, and i think they chose that case because it made apple feel pinned against a wall, quote unquote, helping the terrorists. asked apple to ite the request sealed, but became public. it starts to feel like a hot and public debate where apple says, we stand up for customers, and the fbi says, are you accidentally on the side of terrorists. of course, no one actually think that apple is on the side of terrorists. what is actually about is about resources. the fbi could crack the iphone themselves. it is possible. the chinese government has already done so. the nsa has already done so. the fbi is of the asking apple to do so. here is what will probably happen. apple is raising the bar. they say, you are relying on an perhaps979, very old, obsolete. congress has not come up with how to make these kinds of requests mandatory. let's have that debate today. instead of having to reply to every single request from a da, let's raise the bar so there

i must be talking about apple. daniel: the apple ceo, tim cook, has kicked off the company spring product launch by valley to protect customer data and privacy. the tech giant has been in a battle with the fbi, who want apple to unlock a phone that belong to one of the shooters in san bernardino. and then there is the iphone se, which offers improved battery performance in a new megapixel camera. apple is also releasing a new version of the ipad pro, with a smaller screen. an hour financial correspondent in new york has been following this story for us. so how have the new products been received by investors? reporter: well, overall, i would say it was a rather underwhelming presentation, but still, there was some chatter, especially if you look at the price changes. they did lower the price of the apple watch, and also this new iphone se is the cheapest or at least the least expensive iphone ever when it comes to iphone spot apple, but we probably have to wait -- when it comes to iphones by apple, but we probably

apple's help. that's go to matt larson for the latest as well as paltrow -- paul kedrosky will join us for much of the show. like the fbi has successfully been able to access the information it was seeking from the iphone without the assistance of apple. it looks like there was a third party involved that gave them a technical capabilities to do that, likely some kind of mobile forensic expert that had contracted with the government in the past. as of right now, it looks like the fbi is dropping the request to have apple right additional code to circumvent security features of the existing software. cory: do we have any idea who did this? >> the rumors that i have seen so far are the company celebrite. an israeli contractor that works with the government on similar requests, and are kind of savvy in some of these backdoor hacking around security features to access data. cory: what do you think of this, paul? doesn't look like the fbi had access to this all along but was looking for something to giv

after apple wins the key quarter. lauren: the top of capital rankings. tom brady agrees to a new two-year contract. nicole: it is 5:01. welcome to "fbn:am," your first look at today's markets, the latest breaking news and what to expect that they had. lauren: intercontinental exchange committee on the new york stock exchange is considering an offer for the group that is then approached the company for it. the news a week after it is in advanced talks about a possible $28 billion merger which would create the largest exchange in europe. we'll keep you up to date as it develops. nicole: white house hopefuls making their final push for votes on super tuesday. republican votes in 11 states today with family 600 delegates up for grabs. democrats award more than 860 delegates. make sure you stay with fox business network for special coverage on super tuesday starts tonight at 6:00 p.m. eastern time. lauren: gop front runner donald trump held a rally yesterday in virginia, but his speech was interrupted by protesters multipl

what is the functional difference between ordering apple to break its encryption and ordering apple to bypass it security so the fbi can break the encryption? >> thank you you break a member. functionally there is no difference. what we are talking about is an operating system in which the passcode is an inherent and integrated part of the encryption outreach. if you can get access to the passcode it will affect the encryption process itself. what we are being asked to do a california is to develop a tool, tool which does not exist at this time that would facilitate and enable the fbi in a very simple process to obtain access to the passcode. that passcode is the cryptographic key. essentially we are throwing open the doors and we are allowing the very act of ink decryption to take place. >> i was hoping you would go in that direction. let me ask you this, there has been a suggestion that apple is working against law-enforcement and that you no longer respond to legal process when investigators need your assistance, is that accurate? >> it is absolutely false. as i said in my opening s

prior to joining apple, mr. sewell was deputy general counsel of intel corporation, receiving his bachelors degree from university of lancaster and jd from george washington university. dr. susan landow is professor of cyber security at worcester polytech knick institute, trained as a theatrical computer scientist, she is an expert in crypt crypt crypt cryptics. she earned bachelor from princeton, masters from cornell university and phd from massachusetts institute of technology. our final witness, mr. cyrus vance jr. is currently serving his second term as district attorney after being re-elected in 2013. he also serves as co-chair of the new york state permanent commission on sentencing. previously, mr. vance worked in private practice and taught at seattle university school of law. he is a graduate of yale university and the georgetown university law center. all of your written statements will be entered into the record in their entirety. and we ask that each of you summarize your testimony in five minutes or

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

question, what makes apple apple. >> our goal is customer experience. and so the profit ability is the end result. it's a side benefit. but the important thing is to put the customer front and center. and to make the apple store a place to explore and discover new product. a place to go get help when you need help. and so that the genius part came out of that. a place to go in and maybe you want to sit through a seminar. maybe you want to know how a movie is made. maybe you're curious. maybe you want to learn how to write an app. and so it's a place to go learn. >> rose: a review of supertuesday, and a conversation with tim cook recorded in september of 2015. funding for charlie rose is provided by the following. >> and by bloomberg, a provider of multimedia news and information services worldwide. from our studios in new york city, this is charlie rose. we begin this evening with politics, donald trump and hillary clinton came closer to securing their party's nominations yesterday. supertuesday saw both candidates win victories in seven states. in spee

is this a good move for apple? >> yeah, it's a really good move for apple. >> reporter: there's a reason 40% of iphones in use are the older models. >> for some people, they do really like that smaller phone size. >> reporter: at $399 it's also cheaper and free with a two-year contract. apple also made something else smaller. >> second member of the ipad family. >> reporter: apple is bringing new features, the ipad pro is almost identical in size to the older ipad air. >> a lot of people really wanted the ipad that has the keyboard and pencil and came out with that with the ipad pro in late last year. the problem was that thing is really big and really heavy. >> reporter: under a pound, the new pro starts at $599. of course the keyboard and the pencil cost extra. accessories just like these new bands for the apple watch. >> the top smelling smartwatch in the world. >> reporter: that may be true but -- >> if you look at what actually is the top selling wearable, it's fitbit. >> reporter: in cupertino, jonathan bloom

apple is very good at what it does. it's a wonderful company that .akes wonderful products they have to set out to find a phone that cannot be opened. and they are darn near succeeding. i think with the 6 and beyond they will have succeeded. that doesn't make them bad people, that just poses a challenge for us that we are not yet up to meeting without intervention from courts. rep. bass: since you can clone iphone contents to compatible hardware and test passwords on the clones without putting the original at risk, can't you use so-called brute force methods to get the passcode? dir. comey: not with -- i think this is what mr. issa was asking about. i think a lot of tech experts ask, why can't you mirror the phone in some way and then play with the mirror? for reasons i don't fully understand, not possible in this circumstance. so we do want to try and brute force the phone, that is the multiple guesses. but we need first -- we'll do that ourselves, but we need removed the auto race function and you delay between guesse

he feels like as long as apple has been working with the government if they were going to sue apple they should have told him first. he shouldn't have read about it in the press. has this taken on the passion that apple versus samsung had where it seemed like they were going to pursue that to the ends of the earth. >> they field strongly about privacy and their product. they don't like other people messing with them and if they did what the fbi wants them to do it would damage the entire apple security ecosystem and that's somewhere they're never going to go. >> it seems that he is still trying to grapple with what the purpose of the government is in all of this. he mentioned that he believes it is to set a precedent. where do you think he's coming from there? >> it's all part of a larger issue having to deal with the right to privacy. can technology companies go around giving private citizens strong encryption which will allow them to hide their data from hackers but also from law enforcement and on that debate, cook is proencryption. >> and having talked to him and apple do you feel li

apple watch in particular. fail, i'm notyou sure this is a failure, apple maps, how do you look at a failure? was a learning experience. we did fail. it was a failure. we put out a product that did not meet our own expectations and standards. it was a mistake. i'm not going to come up with an excuse. there is no good ones. it was a mistake. charlie: did it cause you to question the process? mr. cook: it causes you to be introspective about why. you to ask those questions and make sure it never happens again. it is not the first time we failed. it won't be the last. i'm not naive enough to think we won't screw up again. charlie: if you don't fail, you're not growing. mr. cook: the world did not end. but we disappointed our customers and we don't like that. we disappointed ourselves immensely. it was not up to our standards. since then, the product has gotten great and i'm really proud of it. ♪ mr. cook: we did shoot off a leg. suggested they use other products. we suggested it ourselves honest, we are intellec