Transcripts For CNBC Fast Money Halftime Report 20151203

That is chairman dan doets coats of indiana. Yellens testimony in which she basically expand odd her case from yesterday that the economy is Strong Enough for a rate hike in december. Talked about the welcome signs in her words of increases in wage growth in this country and, of course, the spike in the dollar over time. Thats it for us here on squawk alley. Its noon on the east coast. Lets go to the fast money half at hq, and scott. Scott. Okay, carl. Thank you so much. Good afternoon, everybody. Im scott whop ner. Want to welcome all of you to the halftime show. Were following several major events at this hour. The fed chair, as you know, wrapping up her testimony just moments ago. Were also waiting for a briefing out in San Bernardino, california, following yesterdays mass shooting. Whether dont you give us the headlines first in testimony and answers to the q and a which largely mirrored what we had already heard where heed at the Economic Club of washington d. C. Yeah, good points. You got a window into her thinking. They peppered her with all of the down sides of hiking rates. She considered them, and didnt quite say, hey, were aware of the affect of the dollar. Were aware that theres less labor slack. Ultimately she sides it each time with a go ahead when it comes to a modest rate hike in december. I think thats really the ultimate takeaway. She talked about the ecb. She talked about all of the things that are out there. The diverge enlt monetary policies. The net affect is, hey, all of these things, yes, they are negative to the economy, but the nestic strength wroefr comes that. The people i know on the economy and i talk to on a regular basis, the support for sfwler has eroded. The whered they need to be at the emergency rate, there is no there is not a lot of support out there for high interest rates. What there is is theres very little support for zero, and theres support for getting off of zero, going to a quarter. I think its not crazy to think about a one percentage point of fed funds rate in the next year. Maybe two or three or maybe four quarter point hikes. Whats maybe most wrun evening, its not often that when the fed chair is testifying on capitol hill that they get upstaged by another central banker around the world, and in many respects thats what has happened today with draghi over in europe, the head of the ecb, doing what most people are characterizing today as disappointing the market, and can you see the reaction in stocks from the futures until where we trade now. I think the two biggest things going on right now for traders, the first is the euro throwing everyone for a loop. Fxe is having its best single day performance going back to march 18th of 2009. The other big notable thing happening, take a look at the tlt, this thing is down almost 2. 5 . Has not been down this much for 1 of all days going back to when it first started trading in 2002. I would actually turn this question back to steve, and i would ask is that giving her cover to be able to slightly tighten, given that theyre slightly loosening and going negative on to positive rates . I would argue that he almost did a defact onno tightening today and that how coordinated could it be . You wouldnt want the ecb doing anything to make it appear as though they are tightening policy at a time where we are doing that, would they . I think the markets reaction to what draghi did is crazy. Its insane. If you think about the fact that draghi extended by six months the time period of qe, which is a 240 billion addition, theyre reinvesting principle. They went to state and local Government Debt that theyre gig to take in. They cut the deposit rate by negative ten basis points. I get that he disappointed, but did he disappoint to four what is it, four points on the euro . That doesnt mean the Economic Fund mayorelectses are such that 105 to 109 move is justified by the extent to which he disappointed. Whether it shakes out where it is right now, whether its overdone, perhaps, is maybe a trade where it could be right now. Its todays story, but looking forward to what really matters right now is not this 25 basis point normalization that were going to get in december. Its the expectation that you are going to move 100 basis points over the coming year. The support quoted today up 7 . The vix is somewhere around 16 . If the two figures werent where they were, wronk the fed would move. Looking into 2016, can the Federal Reserve with stand another 8 to 9 move higher in the dollar and get to that 8 move higher . You are agreeing that todays number is overstated in terms of strength in the euro . I think what happened today, introduces maybe a new and somewhat interesting question. Yellen is more powerful. 50 points now. It was 100 earlier. The market has to bring in mind what yellen talked about, which is the divergence in policy. I think thats already baked in. All of that is baked in. I think its something the fed has to take into account, and it depends on domestic demand, and yellen was clear about that. All i know, pete, is that the vix is above 17 for the first time in a week today. Volatility is picking up a bit. 14. 5 yesterday. Again, the market is trying to make sense of what to make from both sides of an ocean. What theyre seeing right now is exactly what weve known for a very long time. What really overreacts all the time . Currencies and commodities. When you see those moves, its because they are so levered and when you see the folks in there that start to cover, i mean, joe alluded this, but, i mean, when you see those moves like were seeing right now in the euro, i think some of that is covering as well. Theres no doubt. Thats why we are fwegt that knee jerk, and over time well see that start to shift back down. I dont know if were going to get back to, you know, oneonone in terms of the Goldman Sachs call, what theyre looking for in terms of the youro, but i do think were going to see that pull back. I do think well see some of this volatility come back. Kicking myself where heed. I was talking about buying the vix. I didnt buy it for the portfolio, and heres what was somewhat expected. A move to 17, maybe 20, and then pull back. I want to interjkt that draghi manage thissed very badly. I e let expectations get out of control. Worse that janet. You dont want to go from the man who says im going to do whatever it takes to the guy perceived to not doing enough. I think thats 100 true. You seem to be doing more, and now you came in beneath it. I think there was a question out there, the commentary that i read was how was trayinghi going to surprise to the up side here . Paul richards joins owes the telephone now. Paul, were you surprised by what drughi maybe didnt do today, and whats the trade on the other side of it now . I think i was surprised. The market was surprised. You know, you get a 3 move on the euro, and that says it all. I put it down to three factors. Super mario underwhelmed. He doesnt tend to underwhelm. The market got ahead of itself. I do think its december. You talk about buying the liquidity is a serious issue. You have an extended move. The other thing, too, you remember you have a payroll number tomorrow, and the market, i think, is concerned that suddenly it could underwhelm or what if it gets up to 275 tomorrow, and you think, oh, gosh, the fed has to get on the steeper path of hiking. Theres a lot of factors to play in. What have done if you got yourself square in the euro at 109, and this is a new mean. As we go into the payroll number tomorrow, the euro is either going to extend this move to 110 or fall all the way back to 107. 50, and that will be contingent on whatsoever payroll number we see. I was on the wrong side of this one. The crowded trade was ok the short side of your wroe, and thats heading towards par to steves point, and i guess we should have been thinking that mario would do what he has done in the past. That is have the expectations built up and then try to jawbone the rates,stein. In other words, the next meeting, i would double down on the next meeting, because i think on the next one, since he knows that the swrau boning didnt work this time, he will bring out i would be careful. I think what mario ran into was the limits of his committee. Its not a unanimous decision. Its a lot like the fed in that theres hawks and doves and different interest groups, and the scandinavian countries not willing to go as far. He let the market get in front of it, and he ran into the committee. I dont know if he could do much more. He could have gone out and talked as our fed does. There are some who may be wondering whether we could be about to have a policy error on two continents. Whether theres people are feeling too good about what they think about the economy. Ism wasnt great today. Ism wasnt good the other day. The european economy, the data has been maybe better of late, but its still not doing great. Is there a chance, steve, that draghi is getting too much credit to whats happening there . So he doesnt think he needs to do as much as people want him to do, and then yellen will make a potential policy error because they want to get off zero too much even though the economy may not be ready for them to do anything yet . The answer is yes. Theres always a chance they make an error. I dont say that lightly. I think thats a possibility. Yellen bringing up all the ashz and saying, you know what, the dollar hurts. It hurts our exporters. Last word goes to Paul Richards thn. You can address the currency issues that Steve Liesman is talking about and, again, these dramatic moves were seeing. Or taking us where you want to let us know how now we should be thinking about all of this with a matter of weeks left in the were and 2016. First of all, i would totally agree with steve that i think th that. Thats a tough committee to manage at this time. What i do think is that tomorrows payroll number is just bigger than texas. I think the number is probably going to be better than expected. As such, i think were going to regret not selling the youro at 109 today. I expect the dollar rally to continue. That to me could further wrup set stocks into year end. We have illiquidity, and im a little concerned about the risk for the next three to four weeks. I really appreciate you coming to the phone today, calling in. Good to have your expertise on all of these topics. The s p seems to be at the lows of the day. Its off 2 3 of 1 . Again, it looked like it was set up for a pretty decent day. Got disappointed by what it perceived it got from mario draghi. The dow has moved to its lower portions of the day. It is down by more than 90 points now. We are going to continue to follow all of these stories and so many more, including reports that yahoo may be getting ready to sell its core internet business. Is that the right move . Were going to talk to the former yahoo interim ceo, Ross Levinsohn, exclusively on the future of that company, and we are still awaiting that briefing from out in San Bernardino, california, following yesterdays mass shooting there. We are going to take you there live. Whether its going to pin its core asset, whether they are going to change ceos. Have you had any conversations with any members of the board about becoming the ceo of yahoo . No. Not one. If you were approached, would you want the job . Its a hypothetical, and ill push back because i was in the chair when Scott Thompson was under attack. Its completely unfair to marissa, who is a sitting ceo and trying her hardest to figure out a lot of complex problems to have all this noise in the marketplace. The board is behind her. Theyre supporting her. Employees need to know that. Theres a lot of tumult atta hue right now which for anybody that was there during my era and before my era are very familiar with that. Yahoo index is better than any of them in the category, truly with the exception of facebook and google, youtube, maybe snap chat to some degree for the younger audience. I thought you needed incredibly strong business focus. Really focus on optimizing the operations, pinpoint strategy, for who we are. The notings that we needed to be facebook or google or whatever the next great thing was, i was pretty happy being kwau hue. If you looked at all the partnerships we did, all those partners loved us. Cnbc included at the time. Abc news, spotify, clear channel. We had 800 million, 900 million users. Nobody else had that. It was good to be yahoo. I didnt want to get distracted with, gee, we need to go be facebook. Yahoo has a billion users. Why cant yahoo just articulate that then . Its easy for the gentleman who was the interim ceo who is no longer there to articulate it. Theres a perception in the marketplace that yahoo doesnt know what it is or what it wants to be. Mature businesses do not ino vat their way to growth. One of the things i had a discussion with the new team before i left was even if you are successful in creating a new incredible app that will in the first two years does 100 million of revenue and 20 million of ebida, that was ae standalone company, you would be like, oh, my god, thats fantastic. Have you told bob peck to knock it off already . He is the one that put you out there. Not us. Not the wreed. Its an analyst, well respected one, on wall street who keeps saying that levinsohn should be considered as one of the guys. Again, distraction for the team. I hate to see the most fun i used to have. I walk into the cafeteria that they call earls. Just sit down and talk to people. You know, you forget that these are lives that are being sort of cast around day in and day out by all this noise. The reality is its still a 4 billion top line business, and theres a lot of value there in my mind. Lets talk about how to achieve or realize more value. Starboard, the activist whos are in there and are urging the company to do something, says clearly the best outcome for shareholders, this is from today, would be for yahoos board to immediately abandon the spin of alibaba and commence a competitive process to sell its valuable core business at the highest price possible. Is that the right move . Look, if you are a ceo of a company or on the board of a company, which im on the board of several, you know, private and public companies, the goal of a the singular goal, maximize shareholder value. As a public company. Not private company, but a public company. You and i in this table, i may have a view based on my time there, we dont know what the Tax Implications are yet on alibaba, so its kind of hard for me to say they should expand or shouldnt expand. What will create the most value today and what will create the most value tomorrow . Is it unlocking the core and selling it to somebody and doing making it private, investing more money in it . Is it doing the spin because its going to be taxfree . You know youre going to get a big tax bill regardless of what you do. Whether its 1 billion or 2 billion or 8 billion. 1 billion or 2 billion, and bob peck said it could be 2 billion. I have no idea. If it was your decision to make, would you sell the core business . Tell me what the tax implication is. If i could do the spin i just did. 1 billion to 2 billion. To spin alibaba out . Thats big. You dont know that, and i dont know that. I mean, i thought i had a pretty good view on it in 2012. Its now three and a half years later. Thats not in our control. If im sitting at the company, our control is we have this amazing business. The world is changing. Its evolved in three years. If im sitting on the board, whats the best path to give us the best chance to make this grow again or at least grow like a mature business. Its a mature business. As all of you know, aside from the conversation that were having here, as we continue to react to the market moves as well as it relates to the fed chair in her own testimony on capitol hill today, we do continue to await that News Conference out in california in the aftermath of that mass shooting in San Bernardino yesterday. We expect that in a matter of minutes. We will take you there live. We to have a reporter on site, jane wells. We will hear from her as well. We will come back and we will try to have more of our conversation regarding the future of yahoo. Nonetheless, were back after this. Welcome back. Defense secretary ash carter speaking now at the pentagon. He is making the historic announcement that he is authorizing opening up all combat jobs to women, including all special forces, delta force, navy seals, and other areas of the military that have been previously restricted to female soldiers and sailors. This is a historic announcement. According to one study done over the summer, this will affect about a quarter million jobs throughout the u. S. Military that were previously closed to women, and, of course, the United States military has been making steps gradually toward this over the years, and, in fact, according to one report over the summer, as many as 800 women have been wounded in the wars in afghanistan and iraq in combat since those wars began earlier last decade. Also, 130 women have died while deployed. Ash carter speaking here saying that the u. S. Military can simply not afford to write off half of the u. S. Population as it recruits for the 21st century army and military of the future. He simply says they need the man and woman power to get the swrob done. Scott, back to you. Eamon javers, thank you. Live today from washington d. C. Do want to call your attention, once again, to whats happening in the stock market right now because we are selling off literally as we speak, and we are at the lows of the day. Theres your s p picture. At the lows its down nearly 1 . Right now take a look at what the dow is doing as well. Down by 140 points. Is this just continued reaction to the disappointment of mahero draghi and the realization that the fed is going to likely move in two weeks. I think its a lot of liquidation. I think its a lot of derisking. Its early this morning that we talk about hedge funds and speculators on the wrong side of the currency trade. It bleeds over into the equity side. I think whats most interesting about today, steven weiss asked a great question yesterday. About 2016s potential for both bonds to go down and stocks to go down. Well, thats exactly what were seeing today. Bonds and stocks going down. At least lately you have two fairly do youer outlooks. Over Goldman Sachs, expecting nothing. We had the gentleman from adam parker from Morgan Stanley not looking for much next year. Because so much is in flux. Geopolitically, the kind of stories that were following on an almost every day basis for all of you. Fed policy and election year. There are a lot, josh, of variables to consider when you are trying to put money to work. Totally. I agree with you. I would take this the other way, and i would say the big lesson for me of 2015 was that any time you took a one to five day period and extrapolated out what that performance might mean going forward, you were immediately clowned. To the up side and to the down side. Weve had a failure to break out going back to march through may period, and weve had a failure to break down since the late summer. Were in this kind of stasis where you have obstacles in both directions keeping us there, and i think the worst thing you could do is say the market is not reacting well to the fed today because if you wait a day or two, you are going to see things in a whole new light, and weve seen that over and over again since the start of the were. I want to take a quick break because we do continue to wait for that News Conference in San Bernardino, calcle. 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It looks as though we are getting a bit closer to that News Conference out in San Bernardino, california. My minute now we do expect to hear from officials of several Law Enforcement agencies along with the california governor jerry brown publicly for the very first time. As most of you know by this point, we have heard from the president this morning as well with president obama saying the shooting is now an fbi investigation saying that we do not yet know the motive. Perhaps we will learn more information to help us with that key question in just a matter of minutes, and we will take you live out to San Bernardino when that News Conference begins. I do want to touch the markets because its a developing story. We continue yahoos future. The board continues to figure its own future with that company. We have Ross Levinsohn with us, and we pry to wrap things up as the former interim ceo as we look at what we think, you know, will and should happen. What do you think will happen here . How is this story going to end, or at least turn the page . I do think it goes back to alibaba. If they have figured out a solution on the tax piece for that asset, my guess is they spent, and then you have a core business with yahoo and japan sitting in it that hopefully they can then go focus, operate. You dont have this its not a negative overhang. Its been an amazing overhang with alibaba for the stock. Now you can really focus on what are we doing with the core business, and i think they will take a look at all Strategic Options at that point. It doesnt have a strong definitive focus point. Let me get that pinpoint focus and let every one of these 10,000, 11,000 bees know what were shooting for. Can the core become something to build life back into again, or is it going to remain essentially an anvil around the neck of the company that it just cant do much with. That to me theres no possibility of that. I mean, this is a vibrant almost a billion maybe a billion users, right . Think about what we can all create with a billion users, and this isnt the narrative isnt. Elts a media company. Its a tk Technology Powers everything. Yahoo and all the other places. Do you think its easy to support a billion users coming in every day . The players tribune when kobe put out his statement, i dont know what they had. 20,000, 30,000, 50,000 users. It crashed. It is not easy to sustain a business at that level. It is a theres Great Technology there. I always viewed it as what kind of things could i put in front of consumers to make it unique. Its about creating greater experience with consumers. With that big of foot print and with that much money and that amount of talent inside of engineers and media folks, its unlimited. Even though its going through tough times, i still believe it. Do you have any conversation at all marissa about things . I havent seen her in years. Really the last was when i left. I think i was descriptive about what was in front of her. I appreciate you being here. Thank you. I do want to thank you and hear from you guys as well. Just in case we have to jump back to San Bernardino and it begins out there. Lets take a quick break, and well come back on the other side and see where things stand. This holiday season, get ready for mystery. Whats in the trunk . Nothing. Romance. 18 inch alloys. You remembered. Family fun. Everybody squeeze in. Dont block anyone. And nonstop action. Noooooooo its the event you dont want to miss. Its the season of audi sales event. Get up to a 2,500 bonus for highly qualified lessees on select audi models. We heard you got a job as a developer 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 . Breaking news here as we continue to wait for that News Conference out in San Bernardino, california. An update following that mass shooting yesterday that left 14 people dead, 17 people injured. The motive unknown, but lets listen to the Police Officer at the podium now. Fwm. Good morning, everybody. Again, my name is somewhe chi police here in San Bernardino, and we have county board of sprr james ramos joining us this morning as well. I want to start this off by reiterating that how incredibly tragic this is, and weve got a lot of families that are clearly devastated by what happened here. We need to be sensitive to that, and i want to put out to those families that our prayers are with them and that we were here to support them any way that we can. Some updated numbers. Same as yesterday. We have 14 people that are confirmed dead in this incident. The number of wounded has risen from 17 to 21. They are being treated at various local hospitals. We were asked yesterday about the number of officers that responded. We are still compiling the total number of officers that responded here at 11 00 when the initial call of the shooting went out. Our rough count right now is about 300 officers for our local, county, state, and federal agencies that responded for the initial active shooter component of this and help deal with the crime scene here. Many of those assets also were part of the investigation in the officerinvolved shooting that followed. Here at the scene what we have total is we believe the suspects when they entered, fired somewhere between 65 and 75 rounds from their rifles at the scene. We did locate the one pipe bomb that was actually three pipe bombs combined into one that had a Remote Control car type Remote Control device that appears to have not have worked in this case. There are also four high capacity 223 rifle magazines that were dropped by systems and left in there as evidence that had been recovered. I can confirm that the suspects were wearing the black style Tactical Gear that we talked about yesterday. They were not wearing ballistic vests, bulletproof vests. What they did have and what people may have confused is they had tactical style vests that held equipment, making sfwleenz and ammunition and that sort of stuff. Sorry . Load bearing gear. On the officerinvolved shooting that took place a couple of hours after the incident we talked yesterday about how that came to be, how we ended up at that point in the investigation and what we were following up on. On the officerinvolved shooting that occurred, we had seven Police Agencies that were involved in that shooting, including our department, the sheriffs department. I think we had 14 of our Police Officers involved. Then there were various other agencies that were all part of some of the local task force that had come to assist in the initial response. Of the seven agencies involved, we had 23 officers that were actually fired their weapons at the suspects. Law enforcement fired approximately 380 rounds at the suspects. Both of them were killed here at the scene. The suspects are believed to have fired about 76 rifle rounds at the officers at the determination of the pursuit. 76 is our number that we have right now. However, on them on their person, on their body, and in the vehicle, they had over 1,400 223 caliber rounds that were available to them, and they had over 200. 9 millimeter rounds on their person as well. 200. 9 millimeter rounds. We talked about yesterday they had the two. 223 assault style weapons, rifles, and they had. 9 millimeter pistols with them. 1,300 on the 1,400. 223 rounds. 200. 9 millimeter rounds. On they are person, yes. On their person or immediately in the vehicle around and available to them. Let me get to a few others. We had two officers that were injured in that incident. One of them was a Police Officer that sustained a gunshot wound to his left leg. He was taken to a local hospital last night. He is probably going to be released this morning, if he has not already been released. His injuries are not life let thing. I did visit with him in the hospital last night. He is in good spirits. We also learned there was a second deputy that was also injured in the incident, sustained some cuts to his leg that we believe probably came from brocken glass or shrapnel. Were not exactly sure. Two officers total were injured in that exchange. The house and remnants that became part of the focus of this investigation yesterday, i will confirm that the search that took place revealed that there were 12 people bomb type devices found in that house or in the garage of that house. There were also hundreds of tools, many of which could be used to construct ieds or pipe bombs, and in addition to that, they had other material to have produced some additional bombs as well. There were another 2,000. 9 millimeter rounds found at that house. Over 2,500. 223 rounds that were found at that house. And then there were 2,500, and there were additional several hundred 22 long rifle rounds that were found there. With that im here to talk about the specifics of the investigation and what we discovered evidencewise. I think the fbi has some comments to make a little later in this. Do you have any questions for me . Clearly they were equipped and could have carried out another attack. We intercepted them, though. I dont think were expected to talk about other people that we might be looking for. We are confident that the two people that were involved in the shooting here are the two dead suspects that we have it he scene, and we do not have any credible information to indicate that there is an immediate threat to anybody in the area or anybody in the region. Its our understanding that somehow it was three pipe bombs that were attached together. Somehow attach this remolt control car, and it was designed that the Remote Control device would somehow trigger or set that device off. We dont know if they attempted to do that and have failed or what the story is. Was it moving . It was found out back. That was there at the scene. Im going to let the fbi address those particular issues. The go pro is not confirmed. We do not have any information the suspects had any go pros. Any cameras or any sort that was on them. Based on your interviews, all the can you discuss what happened in the room, and can you still believe that there was some dispute and they left and came back. It seems very much preplanned. We have people in the room that have indicated that the suspect was in the room during the early part of the meeting or party type event. It was a county Public Health Christmas Holiday type gathering luncheon. Thats what it part of that. He was there early on, and he left. We did have some initial information that he left under some kind of duress or as if he was angry. We also had somebody else say that, you know, he just kind of disappeared. We dont know where he went from there. So i dont know that we know enough about that yet but he was there early on. Do you have any motive for the shooting . We still dont have the motive. How they got in the building . Were they targeting anyone in the particular . The building this took place in, this took place in the southernmost building on the property. The doors that they entered were located on the east side, so they entered from that parking lot into those east doors which went directly into the room which is where the shooting took place. Those doors were unlocked. It was an open party to those folks. Do you know how much time elapsed between when he left the party they sprayed the room with bullets. I dont know that there was any one person they targeted. They killed 14 people though. Any idea how long time elapsed when he supposedly got in this argument, left, and any idea where his wife was . I have to apologize. I went to follow up on that question and i failed to ask that today. Yesterday we had information anywhere from 10 minutes to 30 minutes. Its hard to believe all of this was spontaneous. We said yesterday there appears to be a degree of planning that went into this. Nobody just gets upset at a party, goes home and puts together that kind of an elaborate scheme or plan to come back and do that. There was some planning that went into this. Is there any indication, please, sir, any indication of how long they had been stockpiling [ inaudible ]. I dont believe we are far enough into the investigation to really be able to definitively say what that pattern has been or every place that they have been and what theyve been doing over the last several months or several years. Thats part that were still working on though. Did he have a grudge against his coworkers that [ inaudible ]. Not that im personally aware of but i think at some point later today well probably have a comment from his employer in the county to talk about some of those issues. He was no longer employed, right, at the center. Why was he invited back to this party . It was my understanding he was still an employee of the county. Where did he buy the guns from . The guns were legally purchased. The two handguns were purchased by him. The rifles were not but they are components were still following up on. All four guns were legally purchased. [ inaudible question ] im sorry . Was he known to the police or did he have a record . Theres no criminal record that he had that were aware of. We heard some reports there was a utah license plate. Any idea how it was acquired . It was a black ford excursion. Expedition or excursion . Expedition, im sorry. It was a rental car. He rented it three or four days ago. It was actually due to be returned yesterday. Thats why it had utah plates but it was rented locally. Where did he rent it . In his travel overseas, is there any connection that something was in the plans ill let the fbi discuss that. Those are things theyre working on. Have you been able to identify all the victims and notify the next of kin . So our plan today is were going to do is morning press conference. Throughout the course of the day, sheriff mcmahon and the Coroners Office is going to start releasing the names of the victims. Weve been working throughout the night to get identity of those folks and then make notifications, so we will start to put those names out here fairly soon. Were going to probably try to get some pictures out for you as well and probably try to move the media a little closer to its scene for you and well come back and do a press conference later on but we anticipate well start releasing the names of the victims. Were they county employees, the victims . I do not know if they all were. Several of them we believe they are. You talked about the resolve of our officer and the actions they took in the field. Can you talk about this community and how you see them being able to move pass this in the coming days . You know, i read an article by one of the reporters in the press im sorry, the sun this morning and she talked about the resiliency of this community and the fact Everybody Knows San Bernardino has been beaten up with the bankruptcy and some of the things that have hit this community and economically this community has been hit hard but this is a pretty resilient community. We will survive this. Weve had an enormous ground swell of support from our neighboring communities and well wishes that have come in from all over the place. I do know theres a candlelight vigil planned later tonight i believe its at the stadium on e street and i think you will see evidence there of a tremendous amount of support and people that are going to come together in support. As far as the officers, everything that i have seen and all the officers from my department that i have contacted, theyre doing extraordinarily well. Ill tell you as the chief of this agency, im incredibly proud of the way our folks responded, not only the initial response here and the help that we got from our local and regional partners but for the way they also engaged in that officerinvolved shooting. That was nothing short of heroic and extremely proud of the way they handled that. Chief, were your officers wearing body cams . The guns were legally purchased but is it legal to have those long guns here in california . So i think theres some questions still about whether they were california legal or not. We have not gotten to the bottom of that and im let atf address that later on, but we know at this point the four guns were purchased, appeared to be a legal purchase and appeared to be registered. Ya chi were the officers wearing body cams . None of our officers did, i dont know about the other agencies. [ inaudible question ] im not sure where the child is. I know they had a 6monthold child. I dont know exactly where she is. Can you possess that much ammunition legally . I dont think we have restrictions on the volume of ammunition. You may educate me on that anything on the ammunition th was illegal other than offhand im not aware of anything specifically that was illegal. Can you tell us what else you may have found besides the ammunition and who lived there . So the suspect and both suspects were listed on the rental agreement for the property. As i said yesterday, i dont know that we can definitively say they were living there or if they were living elsewhere and what exactly that house was used for. The house became a focus of the investigation based upon information that we had from witnesses that identified him as an employee that was there that they thought was potentially involved and it was followup that we had done connected to that person that took us to that house, led to us that vehicle, which resulted in us in the following and pursuit and shooting that happened. Obviously, once we were involved in that, the house became a primary focus. So we took our time in securing it, making sure we went in that house, cleared it safely. Thats where we discovered the other pipe bombs and i think some other evidence, computer evidence, cell phones, things like that have been recovered from there and various other places. [ inaudible question ] i think theres a lot of helpful information weve gotten from a number of areas. How many scenes are active right now . The people that gave you help, were they able to give you an accounting of how many people were going in and out of that house other than the people that lived there . Were still working and trying. Obviously i think weve heard the rumors you guys have heard and we have some information but i think were still trying to verify that. Keep in mind im careful when i come up here, as i said yesterday, information that went out yesterday is likely to change today and tomorrow. Already the wounded number has changed. I want to be as accurate as we possibly can and a lot of that type of stuff ends up being speculation or hearsay and i would like to confirm it before we say it. Regarding the phones and the computers that were taken, is there anything you can [ inaudible ]. So theres been a number of Electronic Items from thumb drives to computers and cell phones that have been taken. I dont think weve completed the analysis on them. So i dont know what if any theyve completed yet. Real quickly, dave from the fbi is here. He wants hes got a few comments. Im going to let him and then well finish a few. Chief, was there any surveillance at the building . There was no specific surveillance inside the room where the shooting took place. We are, however, in possession of surveillance cameras from the area and were still going through that evidence. Good morning. Im david bowdich. I want to focus on two points. First off, again, our hearts and our prayers are with the families of all these victims of this very heinous act. Secondly, i ask you to be patient. We are trying to give you little bits as we can as we ascertain more and more facts. As you can tell by this investigation and even the media response here today, this is not your average investigation. We have multiple scenes. We have many victims, and it will take time. There are a tremendous number of assets and resources being applied to this investigation. My focus as a factfinder who works for an organization that is really fixated on facts is i would much rather be slower and correct with the information that comes out to you than fast and incorrect. Its incredibly important for us because the integrity of this investigation is absolutely paramount as far as our concerns absent other than taking care of the victims. So we are applying a number of federal resources. We are continuing to work very, very carefully with our partners here at San Bernardino county sheriffs department, San Bernardino city police department, and the atf. These resources are being applied for a number of reasons. Ill give you an example of some things were doing today. We flew in a team to do some from washington to do some reenactment reconstruction of the crime scene. We have continued collecting evidence and are continuing to collect evidence at the multiple scenes. We are going to fly some evidence back to our laboratory in washington, d. C. , today on a plane. That is because we want expeditious analysis of that evidence. As far as the Digital Media that was asked about earlier, the Digital Media is incredibly important because we are trying to determine the motive. We do not yet know the motive. We cannot rule anything out at this point and were hoping that some of that Digital Media exploitation will help us and assist us in obtaining some of that. Again, it would be irresponsible of me and it would be way too early for us to speculate on