Democratic president ial frontrunner Hillary Clinton says the nation needs a new bargain to create better paying jobs. Clinton is campaigning in michigan ahead of the states primary next tuesday. She is proposing a callback of tax benefits for companies that ship jobs overseas. Crews are starting to dig up old lead pipes digging up water mains to homes. Children under six years old, senior citizens, pregnant women, people with compromised in the in systems, and homes where there are high levels of lead. Brazilian police raided a home and took into custody, president released after four hours. He called his detention and politically motivated media spectacle and promises to fight charges and a corruption scandal. Global news powered by our 2400 journalists and more than 150 news bureaus around the world. I am mark crumpton. Emily this is bloomberg west preview coming up we hear from california governor jerry brown. We talk elections, the economy, and Silicon Valley. Plus our mutual funds marking down startups . We talk about the rapidly changing funding environment. And lincolns capital was slashed in half. First, to our lead, the story that could set one of the most important precedents is this decade, apple versus the fbi. It has escalated to a new heights with the head of the fbi asking apple to move its vicious guard dogs and apple rallying Silicon Valley allies to its side. Our only concern is with warrant encryption. While there isnt a middle ground i know of that requires apple to go to work for the government, we have a constitution. The constitution is not a suicide pact. It was built to defend this nation. If all of a sudden we are saying we dont have to and this. If it really was critical information, they would. Emily putting all discussion of president assad, how can the guy get into this iphone . All discussion of precedents aside, how can the fbi get into this iphone . Use survey to a lot of different Security Experts who say the fbi can get into the phone on its own. A lot of experts say the nsa can definitely do it. They are the most wellfunded spy agency on earth and have a very powerful crypto hacking tool. They probably dont want to help out because when it gets into courts their capabilities could be revealed. The fbi doesnt need the nsa. One of the methods is actually to copy the content of the phone so when the iphone erases all the data, they have another ship that works as a file backup another chip that works as a file backup. It only cost 60 and is used to upgrade the phone. On the software side, experts say the fbi should find and exploit cracks in software. There are flaws found in apple stuff all the time. What the fbi can do, it needs to find the vulnerability and get the data. Experts are saying these methods arent easy. They say the fbi isnt probably trying, because this case is about setting a precedent. Emily the fbi is in trying . Think there are four easy ways to get into this phone. Paul the fbi can look for software bugs, they can look for channel attacks, look at radio emissions from the device and figure out information you they can figure out glitch attacks and cause it to load an unsigned operating system version by bypassing signature checks. Or maybe they can pull information out. To do those you have to invest an effort and the issue isnt this particular phone. This isnt an important phone. Emily the case is predicated on the fact this is an important phone. Paul it is an important one for the fbi and an important one for apple. But not for a lawenforcement investigation. Because there will be no trial, going to the nsa wouldnt even meet with situation emily wouldnt they want to do everything they can to get that tough off the phone . Get that stuff off the phone . Paul i think the issue comes down to there are formats in which they can do this. The problem is none of them are easy. They take an investment of time and effort. It depends on which ones you do. Finding a single bug in which you can find and exploit can take find and exploit find an exploit takes time. Presumably the Intelligence Community has done this and we can see that in some of the releases of the past new years. Past few years. What they are trying to do is make it an easier effort by setting a precedent that allows apple to do it for them effectively. Emily amazon, which has backed apple in this fight has quietly stopped encrypting the fire operating system. Paul the issue isnt whether or not we are going to have good or bad security. It is a question whether or not u. S. Companies can be Court Ordered to do things to circumvent their security. We had this detente where the Intelligence Community is taking advantage of accidental mistakes, of which there have been a fast number been a vast number. I think what the fbi is seeing is they are looking at the gap between the information they can collect about a target, which has been growing dramatically over the years, but the amount they cant collect is also growing. The amount they do get has gone up dramatically. Cloud services has put into effect huge repositories of information. The fbi hasnt has a slightly old copy of that data. The good thing is we are getting this public dialogue and it is important dialogue to have to figure out whether we want security to be the priority or not. Emily there are reports that the system is hackable. What would it take to create an unhackable operating system . What apple is trying to do and going to do is attempt to make an iphone that is unbreakable by apple. They are trying to defend themselves from a court order that could compel them to do this. The attacker, nsa, anyone else looking for a vulnerability, they are relying on mistakes made in the development of the device or the development of the software. We are nowhere near getting our Computer Security so good that nobody can i nobody can break anything. Provable securities is incredible he difficult to attain. Apple only needs to rely on the fact emily i could talk to you for hours but we will have to leave it there. Always great to have you here on the show. Selena wang of newburgh news in new york of Bloomberg News in new york. California governor jerry brown weighing in on the president ial campaign and donald trump. He gets very candidates next. Very candid next. Emily who was the big winner of the Republican Debate . It may be Hillary Clinton at the president ial candidate posted nine tweets, netting a total of 10 million impressions. Republican frontrunner donald trump led the pack, picking up 800 additional followers the debate averaged 14. 5 Million Viewers according to preliminary ratings. I sat down with governor jerry brown for an exclusive interview on the political landscape, Silicon Valley, and climate change. I asked him how he thinks this primary season will play out. Gov. Brown they are divided between republicans and democrats, conservatives, liberals, religious fundamentalists, libertarians, and all the rest. We have a crisis of governance in the face of an increasingly dangerous world. People are upset. The candidate see is not all that inspiring. It is very difficult in the midst of this kind of challenging complexity. We are going to have to do better to win the support of the American People. Emily some are saying the primary could be the last stand. Is that nomination inevitable . Gov. Brown mr. Trump does not have a majority. Its happened in unpredictable ways things happen in unpredictable ways. Stay tuned, there is much more that happens. It is very open. Emily does it scare you he is that close to the nomination and presidency . Gov. Brown i would like to sound scared. There are a lot of things im more concerned about. Im concerned about the big issues acing america. Getting together when it is on the Supreme Court nominee, when it is increasing search and development and dealing with the negative consequences. I would like that to happen. If we have a dysfunctional congress, ultimately we are going to get back to president. I would like to do my part. Emily who are you supporting . Gov. Brown im not supporting anybody at this point. Emily would you accept a vp nomination . Gov. Brown i havent been offered one. Emily would you be interested . Gov. Brown not particularly. I ran for president , not vice president. Emily do you see a demise of the two parties . Gov. Brown id say the Republican Party hasnt quite gelled yet but it is getting close. Events happen in politics. Comments made. It looks like it is shaping up, it looks like it is coming together. I would give us a few more months. Emily is donald trump fit to be president . Gov. Brown i think the idea hes going to build a wall and make mexico pay for it is absolutely preposterous, and it will bring such tension with our closest neighbor. A dumber idea i cant imagine. It is dumber than it is dangerous. Emily you have other states, other cities trying to be the next Silicon Valley. How can you be sure where top talent is cultivated . Gov. Brown you cant just come here and think you will create stamford, apple and facebook. The evolution has come to world war ii, the spacing and information technology. It is based on a system of higher education, the openness to new entrants. People come here and in a matter of months they can find an important job. In a matter of years they become ceo or president. If you look at most of the job most of the governors, they all moved here. Within a matter of decade or two, they are running for higher office. A lot of these other places are much more culturally conservative. In that sense we have to be very careful to nurture. But im not worried about other people grabbing it. Emily you were born and raised in san francisco, you know how the city has changed, how expensive it has become, the Tech Community has been blamed for widening inequality. Is that fair, and if so what emily to facebook overhauling its tax structure. Carolyn high has all the details from london. Carolyn facebook is set to pay millions of dollars more in taxes the u. K. And try to improve transparency. Facebook would stop reading stop reading sales through ireland, where it has been benefiting from a lower Corporate Tax rate. And instead would book u. K. Sales in great britain. This comes after the social begin giant was criticized for u. K. Tax bills that were less than my own. A tax bill that was less than any other average worker in the u. S. In the u. K. Would tend to pay. They are paying the equivalent of 6,000. The tax situation has been a growing theme. With google agreeing to pay 184 million in back taxes. Although it is mainly served to stir up more controversy. As yet, it is unknown the exact amount facebook would have to boost its payments within the next tax year. Smaller Business Sales without staff intervention, that would continue to be rooted. The Immediate Reaction is positive as it seeks to introduce new rules for what it seeks to be aggressive tax planning. Other companies that have previously been in the microscope are starbucks, amazon. Back to you. Emily bloombergs carolyn hyde in london. How google engineers are working with unicef to map out where the zika virus may hit next. This newly developed Mapping Technology later in the show. And they scored is that the pay millions more in taxes in the u. K. As it tries to improve transparency after facing growing public criticism over tax avoidance. From april, they will stop rooting Advertising Sales from bigger clients through ireland where it had been benefiting from a lower Corporate Tax rate and instead will book bigger u. K. Sales in great britain. This move comes after the social media giant was widely criticized back in october for u. K. Tax bill that was less than my own. Was less thant any other average worker in the u. K. They were paying 4327 pounds. Thats about 6,000. Systemr to placate the google agreed in january to pay back taxes. This really served to stir up more controversy as the figure was still deemed to be way too small. Unknown the exact amount facebook will have to boost payments in the next tax year. Smaller Business Sales will continue to be routed through ireland as it is still the international headquarters. The Immediate Reaction from the u. K. Government is positive. Other companies that had previously been in the microscope are the likes of starbucks and amazon. A further goodwill gestures come from these u. S. Juggernauts anytime soon. Back to you. Carolyn hyde in london. Committee out, how google is working with engineers to map out where the zika virus might strike next. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. When it comes to the fithings you love,. You want more. Love romance . Get lost in every embrace. Into sports . Follow every pitch, every play and every win. Change the way you experience tv with x1 from xfinity. Mitt romney said he would support any effort to deny donald trump the republican nomination at the partys convention in july if trump does not have enough delegates to win outright. Romney spoke with Bloomberg Politics comanaging editor mark lauer. Even a lot of your own political allies and advisers say, and i think he would probably say, that is the most likely outcome, donald trump and Hillary Clinton as the nominees. What will you do . Gov. Romney i would vote conservative on the ballot, and if there was not one i was comfortable with i would write in a name. Mark romney said he might contribute to super pac efforts to block trump from getting the nomination. Americans are joining the labor force in droves. Payrolls grew by 242,000 workers in february, exceeding most forecasts. The workforce is going at the fastest pace in more than a decade. The share of the population with a job as the highest since 2009 and the 4. 9 Unemployment Rate matched and eightyear low. President obama discussed the numbers and electionyear politics. President obama i dont expect that these pacs and this evidence will convince some of the politicians out there to change their doomsday rhetoric, talking about how terrible america is, but the American People should be proud of what they have achieved, because this speaks to their resilience, innovation, creativity, risktaking, and grit. Mark the jobs will be watched closely by the federal reserve. Astronaut scott kelly has been back on earth for a few days. Kelly spent 340 days in space, the longest single spaceflight by an american. He met with reporters to discuss his mission and a potential trip to mars. Scott i think we know enough and we are close enough that if we made the choice, we are going to do this, we are going to set a goal, a time, i think we can do it. Mark kelly says his muscles and joints ache, his skin is so sensitive that it burns when he walks, and he cannot sink a basketball shot. Tony dyson, the man who built r2d2, has died. The droid became one of the worlds favorite robots. Globals powered 24 hours a day. I am mark crumpton. More bloomberg west is next. Emily funds from fidelity to blackrock have been marking down portfolios. What is driving trend . Can it accelerate . Joining us to discuss is matthew wong and mark milian. Mark, i will start with you. Give us the lay of the land. What we have seen so far from these mutual funds. Mark the mutual funds are required to every six months reevaluate the price of their holdings and disclose that information publicly. Within the past couple of years, we have the a lot of these mutual bonds make investments into what we call unicorns, these giant Tech Startups that are valued over 1 billion. They have to figure out what these things are actually worth, because you dont really have a price that fluctuates because they are, the shares are not traded regularly. They use a number of different factors, like if it is drop ox, what is box doing . That is the company closest to dropboxs business. Emily what funds have been most active here, and what trends are you seeing . Matthew there are a few funds we have seen more active than the rest, blackrock, management. One trend we did see happen at the end of q4 was a slow down. The other thing we are seeing is some of the funds still fairly active in 2016, tex investments in 2016, oscar, snapchat among them. We are seeing a decline in new investments by these mutual funds. Emily last week we saw a sort of push for mutual funds in private tech companies. Mark that is right. A number of investors piled into facebook. It was the most visible example of a superhot company that everyone wanted access to and it delayed a long time going public. Now that has become the norm. Every giant tech startup is doing that. Everyone is waiting for uber and these Different Companies to go public, and now uber is is valued at 62. 5 billion, more than facebook ever was as a private company. It is insane how long these companies are staying private. Emily if these mutual funds fullback, is that bad news for some of these companies that are trying to raise money at later stages . Does it seriously impact their ability to raise . Matthew one thing to keep in mind is mutual funds are one piece of this big private market puzzle. There are lots of investors that have flooded into the private markets, mutual funds one of them. Corporate venture has been active. We have seen asian money, a couple of names like alibaba and 10cent invested in these money. One thing that is interesting is the hedge funds have not been active in investing the u. S. They have pulled back in