Transcripts For CNBC Power Lunch 20150116 : comparemela.com

Of military showdown. That context, there is no good argument for us to try to undercut undermine the negotiations until theyve played themselves out. If iran ends up ultimately not being able to say yes, if they cannot provide us the kind of assurances that would lead myself, David Cameron, and others to conclude that they are not obtaining a Nuclear Weapon then were going to have to explore other options, and i will be the first one to come and say we need to tighten the screws. Congress should be aware that if this diplomatic solution fails, then the risks and likelihood that this ends up being at some point a military confrontation is heightened. Congress will have to own that as well. That will have to be debated by the American People. We may not be able to rebuild the kind of coalition we need in that context if the world believes we are not serious about negotiations. I take this very seriously, and i dont question the good faith of some folks who think this might be helpful. Its my team on the table. We have been working on this for five, six, seven years. We consult closely with allies like the United Kingdom in making these assessments. I am asking congress to hold off because our negotiators, our partners, those that are most intimately involved in this assess that it would jeopardize the possibility of resolving providing a diplomatic solution to one of the most difficult and longlasting National Security problems that we faced in a very long time. Congress needs to show patience. I said to my Democratic Caucus colleagues yesterday that i will veto a bill that comes to my desk. Ly make this argument to the American People about why im doing it and i respectfully request them to hold off for a few months to so if we have the possibility of solving a big problem without resorting potentially to war. I think thats worth doing. Well see how persuasive i am but if im not persuading congress, i promise ill be taking my case to the American People on this. There are talks at least that have a prospect of success. I would argue with the president how much better is that than the other potential outcomes and that is what we should be focused on. To answer you very directly yes, i have contacted the centers this morning, and i may speak to one or two more this afternoon. Not in any way to tell the American Senate what they should or shouldnt do. That wouldnt be right. But simply to make a point at a country that stands along side america in these negotiations that its the opinion of the United Kingdom that further sanctions or further threat of sanctions at this point wont actually help to bring the talks to a successful solution and they could fracture the International Unity that theres been which has been so valuable in presenting united front to iran. I say this as someone who played quite a strong role in getting europe to sign up to the very tough sanctions, including Oil Sanctions in the fist place. I would just simply make this point that those sanctions just havent had an affect and those that say if you do an interim meeting, if you even start discussing with the iranians any of these things the sanctions will fall hard and no one will be able to stick at it. That has demon straightively been shown not to be true. The pressure is still there. As the president says if the iranians say no, and there is no deal then by all means, lets sit down and work out what extra sanctions to put in place because we are absolutely united in a simple thought which is a deal that takes iran away from a Nuclear Weapon. Better than iran either having a Nuclear Weapon or military action. It comes down to that simple choishgs so when i do what i can to help as one of the countries negotiating, sure i will. Its hard to know what the iranian thinking is about this. Its very hard to know what the there is a very clear effort, which is to take iran away from a Nuclear Weapon and include an agreement that would be mutually beneficial. I did get a question from Nick Robertson and the bbc. Prime minister, with extra security being put in place today for the Jewish Community and also for Police Officers would people be right to conclude that the threat of an attack on the streets of britain is now almost imminent . You have spoken of the threat caused by fighters coming back from sear wra. Do you ever worry that this is a legacy the decision of the United States and the United Kingdom to in effect stand on the sidelines during serious bloody civil war . If i may briefly, you said you agree. Is he right . Is it time to stick to the plan . We have to be vigilant and strengthen police and security. We have to make sure we do everything we can to keep our country safe, and that involves a longterm, patient disciplined approach. There is no single simple thing that needs to be done. It means closing down the ungoverned spaces that terrorists prayed. It means working against isil in iraq and syria. It means countering this poisonous fanatical death consult of a narrative that is perverting the religion of islam. It means working together with our oldest and best partners so that we share intelligence and security we try and prevent terrorist atrocities from taking place. It means all of these things and it is going to be a long, patient, and hard struggle. I am sure we will come through it and overcome it because in the end the values we hold to are freedom of democracy, having open tolerant societies. These are the strongest values that can be, and in the end we will come lou. Some of the challenges our country has faced together in the past it will take great discipline, great patience, great hard work. You asked specifically about the question about imindependence. We have a system in the United Kingdom that was set by the joint Terrorism Assessment Center and not set by politicians. They judged that the threat we face is severe. That means in their words an attack is highly likely. If ever there is an imminent threat of attack it goes to the next level up which is critical, but its their decision, not mine. My responsibility is to make sure we marshall everything we have as a country in order to defeat this threat. On the Jewish Community, i think its great that the metropolitan police are stepping up controls. I think this is have you to recognize in fighting terrorism, as weve found in britain before, you cannot simply rely on police and security. This is a job for everyone. This is a role were all going to have to play in the vigilance and making sure we keep our community safe. With respect to syria and the connection to foreign fighters, there is no doubt in the chaos vacuum thats been created in big chunks of syria thats given an opportunity for foreign fighters to both come in and come back out. We are now busy working with our partners to implement a series of actions to identify who may be traveling to syria in order to get trained, to fight, or to hatch plots that would be activated on return to her home countries. So its a very serious problem. First of all, mischaracterizes our position. We had so tanned on the sidelines. Its true we did not invade syria. The assertion is had we invaded syria, we roob less prone to terrorist attacks. Ill leave it to you to play out that scenario and if that sounds accurate. Weve been active in trying to resolve a tragic situation in syria through humanitarian efforts, through the removal of chemical weapons from syria had been so deadly and now as isil has moved forward, weve been very active in degrading their Capabilities Even as we are working with partners to make sure that the foreign fighter situation is resolved. I think davids point is the key one. This phenomenon of violent extremism, the ideology the networks the capacity to recruit young people this has metastacized, and it is widespread, and it has penetrated communities around the world. I do not consider it an exo we are stronger. We are representing values that the vast majority of muslims believe in and tolerance and in working together to build rather than destroy. This is a problem that causes great heartache and tragedy and destruction, but it is one that ultimately were going to defeat, but we cant just defeat it through weapons. One of the things that we spoke about is how do we lift up those voices that represent the vast majority of the muslim world so that that counter narrative against this nilism is put out there as aggressively and as nimbly as the messages come out from these fanatics. How do we make sure that we are working with local communities and faith leaders and families . Whether in a neighborhood in london or a neighborhood in detroit, michigan. Thats going to be slow mroding, systematic work. Its work that im confident were going to be able to accomplish. Particularly when we have strong partners like the United Kingdom. On the economy, would i note that Great Britain and the United States are two economies that are standing out at a time when a lot of other countries are having problems. We must be doing something right. Major garrett. Good afternoon, mr. Prime minister. Good afternoon to you, sir. Questions for both of you. I want to make sure we heard what you were trying to say. You clearly are directing a message to congress in the context of iranian negotiations. Were you also accepteding a message, both of you, to iran that if the sanctions talks fail, that war foot issing the next most likely alternative for this country and those who are alive with us in this common pursuit . Atrocities in paris, raids and threats either in belgium, i like to ask you both do you believe europe is at a turning point now in its recognition of what its threats are and its own mobilization in terms of new laws, security footing, larger budgets . You both talked about cyber security. There is a crucial issue for both countries. Back doors and encryption to protect people and also privacy. I would like your comments. I am not, repeat not, suggesting that we are in immediate war footing should negotiation with iran fail. As david put it very simply if in fact our view is that we have to prevent iraq from getting a Nuclear Weapon then we have to recognize the possibility that should diplomacy fail we have to look at other onkss to achieve that goal. If you listen sometimes to the rhetoric surrounding this issue i think there is sometimes the view that this regime cannot be trusted, that effectively negotiations with iran are pointless, and since these claims are being made by individuals who see iran as a mortal threat and want to prevent them as bad as we do from getting a Nuclear Weapon then the question becomes what other alternatives exactly are available . That is part of what we have to consider as to why its so important for us to pursue every possible avenue to see if we can get a deal. Now, its got to be a good deal. Not a bad one. Ive already shown myselfotology walk away from a bad deal. The p5 plus one walked away with us. Nobody is interested in some document that undermines our sanctions and gives iran the possibility of whether covertly or gradually building up its Nuclear Weapons defense. Were not going to allow that and anything that we do any deal that we arrive at if we were to arrive at one, would be subject to scrutiny across the board. Not just by members of congress but more importantly, by people who actually know technical aspects of Nuclear Programs in advance. And now we can effectively verify the most possible. So the bottom line is this. We may not get there, but we have a chance to resolve the Nuclear Issue peacefully and i should point out also by the way, that even if we get a nuclear deal and we are assured that iran doesnt possess Nuclear Weapons weve still got a whole bunch of problems with iran on state sponsored terrorism, their rhetoric towards israel their financing of hezbollah. Weve got differences with respect to syria. Its not as if suddenly we got a great relationship with iran. It solves one particular problem that is urgent, and it solves it better than the other alternatives that might present themselves. So my main message to congress at this point is just hold your fire. Nobody around the world, least of all the iranians doubt my ability to get some additional sanctions passed should these negotiations fail. Thats not a hard vote for me to get through congress. The notion that we need to have additional sanctions or even possibility of sanctions hanging over their head to force them to a better deal i think the iranians know that that is certainly in auerbach pocket if negotiations fail. With respect to violent extremism, my impression is that europe has consistently taken this seriously during the course of my presidency. We have worked collaboratively and with great urgency and with a recognition that not only do you have foreigners who may be trying to hatch plots in europe but that given large number of populations, its important to reach out to and work with local communities and to have a very effective intelligence and counterterrorism cooperation between countries between the United States and europe. Wills no doubt that the most recent events has amplified those concerns. I think among the things ive learned over the last six years is that theres always more that we can do. We can always do it better. We learned from mistakes each incident that occurs teaches our professionals how we might be able to prevent these the next time and im confident that the very strong cooperation already exist with europe and will get that much better in the months and years to come. Heres where i think new york has some particular challenges. I said this. The United States has one big advantage in this whole process. Its not that our Law Enforcement or swellings service is so much better although ours are very very good and i think we begin to recognize the capabilities. Our biggest advantage, major, is that our muslim populations, they feel themselves to be americans, and there is this incredible process of immigration and assimilation that is part of our tradition that is probably our greatest strength. Now, it doesnt mean that we arent subject to the kinds of tragedy that is we saw at the Boston Marathon but i think thats been helpful. As they respond, as they work with us to respond to these circumstances, its important for europe not to simply respond with a hammer and Law Enforcement and military approaches to these problems. There also has to be a recognition that the stronger the ties, the north african or frenchman or north african disent to french values French Republic the last point ill make and ill turnover to david is with respect to the issue of intelligence gathering, signal intelligence encryptions, this is a challenge that we have been working on since i have been president. Obviously it was amplified when mr. Snowden did what he did. Weve been in dialogue with companies, and we have systematically worked through weighs in which we can meek privacy concerns but also meet the very real concerns that theyve identified and my fbi director have identified. Social media is the primary way in which these terrorist organizations are communicating. Its no different than anybody else, but theyre good at it and when we have the ability to track that in a way that is legal and forms with due process in some cases some would say that was justified. I would argue that that although there are some legitimate concerns there, overall the United States government and from what i have seen the British Government have operated in a scrupulous and lawful way to try to balance the security and privacy concerns, and we can do better and thats what were doing. But were still going to have to find ways to make sure that if an al qaeda affiliate is operating in Great Britain or in the United States, that we can try to prevent real tragedy, and i think the Companies Want to see that as well. Theyre patriots. They have families that they want to see protected. We just have to work through in many cases what are technical issues so its not so much that theres a difference intent but how to square the circle is difficult, and were working with were also going to be in dialogue with companies to try to make that happen. If theres a deal then the pressure is off iran, and if there isnt a deal new pressure has to be applied to iran. You know we are approach this with a huge amount of skepticism. The goal of an iran without a Nuclear Weapon makes these talks worthwhile. On the issue your question has is this a turning point for europe in terms of terrorism . I would argue that we turned some time ago. Maybe britain in particular because of the appalling attack that is took place in 2005 but there have been attacks elsewhere, but since i have been Prime Minister theres probably been at least one major plot every year by the significant nature that we have managed to intercept, stop and prevent. The awareness of the scare and the challenge we face is absolutely there across government, across parliament across the different Political Parties in the police and David Cameron<\/a>, and others to conclude that they are not obtaining a Nuclear Weapon<\/a> then were going to have to explore other options, and i will be the first one to come and say we need to tighten the screws. Congress should be aware that if this diplomatic solution fails, then the risks and likelihood that this ends up being at some point a military confrontation is heightened. Congress will have to own that as well. That will have to be debated by the American People<\/a>. We may not be able to rebuild the kind of coalition we need in that context if the world believes we are not serious about negotiations. I take this very seriously, and i dont question the good faith of some folks who think this might be helpful. Its my team on the table. We have been working on this for five, six, seven years. We consult closely with allies like the United Kingdom<\/a> in making these assessments. I am asking congress to hold off because our negotiators, our partners, those that are most intimately involved in this assess that it would jeopardize the possibility of resolving providing a diplomatic solution to one of the most difficult and longlasting National Security<\/a> problems that we faced in a very long time. Congress needs to show patience. I said to my Democratic Caucus<\/a> colleagues yesterday that i will veto a bill that comes to my desk. Ly make this argument to the American People<\/a> about why im doing it and i respectfully request them to hold off for a few months to so if we have the possibility of solving a big problem without resorting potentially to war. I think thats worth doing. Well see how persuasive i am but if im not persuading congress, i promise ill be taking my case to the American People<\/a> on this. There are talks at least that have a prospect of success. I would argue with the president how much better is that than the other potential outcomes and that is what we should be focused on. To answer you very directly yes, i have contacted the centers this morning, and i may speak to one or two more this afternoon. Not in any way to tell the American Senate<\/a> what they should or shouldnt do. That wouldnt be right. But simply to make a point at a country that stands along side america in these negotiations that its the opinion of the United Kingdom<\/a> that further sanctions or further threat of sanctions at this point wont actually help to bring the talks to a successful solution and they could fracture the International Unity<\/a> that theres been which has been so valuable in presenting united front to iran. I say this as someone who played quite a strong role in getting europe to sign up to the very tough sanctions, including Oil Sanctions<\/a> in the fist place. I would just simply make this point that those sanctions just havent had an affect and those that say if you do an interim meeting, if you even start discussing with the iranians any of these things the sanctions will fall hard and no one will be able to stick at it. That has demon straightively been shown not to be true. The pressure is still there. As the president says if the iranians say no, and there is no deal then by all means, lets sit down and work out what extra sanctions to put in place because we are absolutely united in a simple thought which is a deal that takes iran away from a Nuclear Weapon<\/a>. Better than iran either having a Nuclear Weapon<\/a> or military action. It comes down to that simple choishgs so when i do what i can to help as one of the countries negotiating, sure i will. Its hard to know what the iranian thinking is about this. Its very hard to know what the there is a very clear effort, which is to take iran away from a Nuclear Weapon<\/a> and include an agreement that would be mutually beneficial. I did get a question from Nick Robertson<\/a> and the bbc. Prime minister, with extra security being put in place today for the Jewish Community<\/a> and also for Police Officers<\/a> would people be right to conclude that the threat of an attack on the streets of britain is now almost imminent . You have spoken of the threat caused by fighters coming back from sear wra. Do you ever worry that this is a legacy the decision of the United States<\/a> and the United Kingdom<\/a> to in effect stand on the sidelines during serious bloody civil war . If i may briefly, you said you agree. Is he right . Is it time to stick to the plan . We have to be vigilant and strengthen police and security. We have to make sure we do everything we can to keep our country safe, and that involves a longterm, patient disciplined approach. There is no single simple thing that needs to be done. It means closing down the ungoverned spaces that terrorists prayed. It means working against isil in iraq and syria. It means countering this poisonous fanatical death consult of a narrative that is perverting the religion of islam. It means working together with our oldest and best partners so that we share intelligence and security we try and prevent terrorist atrocities from taking place. It means all of these things and it is going to be a long, patient, and hard struggle. I am sure we will come through it and overcome it because in the end the values we hold to are freedom of democracy, having open tolerant societies. These are the strongest values that can be, and in the end we will come lou. Some of the challenges our country has faced together in the past it will take great discipline, great patience, great hard work. You asked specifically about the question about imindependence. We have a system in the United Kingdom<\/a> that was set by the joint Terrorism Assessment Center<\/a> and not set by politicians. They judged that the threat we face is severe. That means in their words an attack is highly likely. If ever there is an imminent threat of attack it goes to the next level up which is critical, but its their decision, not mine. My responsibility is to make sure we marshall everything we have as a country in order to defeat this threat. On the Jewish Community<\/a>, i think its great that the metropolitan police are stepping up controls. I think this is have you to recognize in fighting terrorism, as weve found in britain before, you cannot simply rely on police and security. This is a job for everyone. This is a role were all going to have to play in the vigilance and making sure we keep our community safe. With respect to syria and the connection to foreign fighters, there is no doubt in the chaos vacuum thats been created in big chunks of syria thats given an opportunity for foreign fighters to both come in and come back out. We are now busy working with our partners to implement a series of actions to identify who may be traveling to syria in order to get trained, to fight, or to hatch plots that would be activated on return to her home countries. So its a very serious problem. First of all, mischaracterizes our position. We had so tanned on the sidelines. Its true we did not invade syria. The assertion is had we invaded syria, we roob less prone to terrorist attacks. Ill leave it to you to play out that scenario and if that sounds accurate. Weve been active in trying to resolve a tragic situation in syria through humanitarian efforts, through the removal of chemical weapons from syria had been so deadly and now as isil has moved forward, weve been very active in degrading their Capabilities Even<\/a> as we are working with partners to make sure that the foreign fighter situation is resolved. I think davids point is the key one. This phenomenon of violent extremism, the ideology the networks the capacity to recruit young people this has metastacized, and it is widespread, and it has penetrated communities around the world. I do not consider it an exo we are stronger. We are representing values that the vast majority of muslims believe in and tolerance and in working together to build rather than destroy. This is a problem that causes great heartache and tragedy and destruction, but it is one that ultimately were going to defeat, but we cant just defeat it through weapons. One of the things that we spoke about is how do we lift up those voices that represent the vast majority of the muslim world so that that counter narrative against this nilism is put out there as aggressively and as nimbly as the messages come out from these fanatics. How do we make sure that we are working with local communities and faith leaders and families . Whether in a neighborhood in london or a neighborhood in detroit, michigan. Thats going to be slow mroding, systematic work. Its work that im confident were going to be able to accomplish. Particularly when we have strong partners like the United Kingdom<\/a>. On the economy, would i note that Great Britain<\/a> and the United States<\/a> are two economies that are standing out at a time when a lot of other countries are having problems. We must be doing something right. Major garrett. Good afternoon, mr. Prime minister. Good afternoon to you, sir. Questions for both of you. I want to make sure we heard what you were trying to say. You clearly are directing a message to congress in the context of iranian negotiations. Were you also accepteding a message, both of you, to iran that if the sanctions talks fail, that war foot issing the next most likely alternative for this country and those who are alive with us in this common pursuit . Atrocities in paris, raids and threats either in belgium, i like to ask you both do you believe europe is at a turning point now in its recognition of what its threats are and its own mobilization in terms of new laws, security footing, larger budgets . You both talked about cyber security. There is a crucial issue for both countries. Back doors and encryption to protect people and also privacy. I would like your comments. I am not, repeat not, suggesting that we are in immediate war footing should negotiation with iran fail. As david put it very simply if in fact our view is that we have to prevent iraq from getting a Nuclear Weapon<\/a> then we have to recognize the possibility that should diplomacy fail we have to look at other onkss to achieve that goal. If you listen sometimes to the rhetoric surrounding this issue i think there is sometimes the view that this regime cannot be trusted, that effectively negotiations with iran are pointless, and since these claims are being made by individuals who see iran as a mortal threat and want to prevent them as bad as we do from getting a Nuclear Weapon<\/a> then the question becomes what other alternatives exactly are available . That is part of what we have to consider as to why its so important for us to pursue every possible avenue to see if we can get a deal. Now, its got to be a good deal. Not a bad one. Ive already shown myselfotology walk away from a bad deal. The p5 plus one walked away with us. Nobody is interested in some document that undermines our sanctions and gives iran the possibility of whether covertly or gradually building up its Nuclear Weapon<\/a>s defense. Were not going to allow that and anything that we do any deal that we arrive at if we were to arrive at one, would be subject to scrutiny across the board. Not just by members of congress but more importantly, by people who actually know technical aspects of Nuclear Programs<\/a> in advance. And now we can effectively verify the most possible. So the bottom line is this. We may not get there, but we have a chance to resolve the Nuclear Issue<\/a> peacefully and i should point out also by the way, that even if we get a nuclear deal and we are assured that iran doesnt possess Nuclear Weapon<\/a>s weve still got a whole bunch of problems with iran on state sponsored terrorism, their rhetoric towards israel their financing of hezbollah. Weve got differences with respect to syria. Its not as if suddenly we got a great relationship with iran. It solves one particular problem that is urgent, and it solves it better than the other alternatives that might present themselves. So my main message to congress at this point is just hold your fire. Nobody around the world, least of all the iranians doubt my ability to get some additional sanctions passed should these negotiations fail. Thats not a hard vote for me to get through congress. The notion that we need to have additional sanctions or even possibility of sanctions hanging over their head to force them to a better deal i think the iranians know that that is certainly in auerbach pocket if negotiations fail. With respect to violent extremism, my impression is that europe has consistently taken this seriously during the course of my presidency. We have worked collaboratively and with great urgency and with a recognition that not only do you have foreigners who may be trying to hatch plots in europe but that given large number of populations, its important to reach out to and work with local communities and to have a very effective intelligence and counterterrorism cooperation between countries between the United States<\/a> and europe. Wills no doubt that the most recent events has amplified those concerns. I think among the things ive learned over the last six years is that theres always more that we can do. We can always do it better. We learned from mistakes each incident that occurs teaches our professionals how we might be able to prevent these the next time and im confident that the very strong cooperation already exist with europe and will get that much better in the months and years to come. Heres where i think new york has some particular challenges. I said this. The United States<\/a> has one big advantage in this whole process. Its not that our Law Enforcement<\/a> or swellings service is so much better although ours are very very good and i think we begin to recognize the capabilities. Our biggest advantage, major, is that our muslim populations, they feel themselves to be americans, and there is this incredible process of immigration and assimilation that is part of our tradition that is probably our greatest strength. Now, it doesnt mean that we arent subject to the kinds of tragedy that is we saw at the Boston Marathon<\/a> but i think thats been helpful. As they respond, as they work with us to respond to these circumstances, its important for europe not to simply respond with a hammer and Law Enforcement<\/a> and military approaches to these problems. There also has to be a recognition that the stronger the ties, the north african or frenchman or north african disent to french values French Republic<\/a> the last point ill make and ill turnover to david is with respect to the issue of intelligence gathering, signal intelligence encryptions, this is a challenge that we have been working on since i have been president. Obviously it was amplified when mr. Snowden did what he did. Weve been in dialogue with companies, and we have systematically worked through weighs in which we can meek privacy concerns but also meet the very real concerns that theyve identified and my fbi director have identified. Social media is the primary way in which these terrorist organizations are communicating. Its no different than anybody else, but theyre good at it and when we have the ability to track that in a way that is legal and forms with due process in some cases some would say that was justified. I would argue that that although there are some legitimate concerns there, overall the United States<\/a> government and from what i have seen the British Government<\/a> have operated in a scrupulous and lawful way to try to balance the security and privacy concerns, and we can do better and thats what were doing. But were still going to have to find ways to make sure that if an al qaeda affiliate is operating in Great Britain<\/a> or in the United States<\/a>, that we can try to prevent real tragedy, and i think the Companies Want<\/a> to see that as well. Theyre patriots. They have families that they want to see protected. We just have to work through in many cases what are technical issues so its not so much that theres a difference intent but how to square the circle is difficult, and were working with were also going to be in dialogue with companies to try to make that happen. If theres a deal then the pressure is off iran, and if there isnt a deal new pressure has to be applied to iran. You know we are approach this with a huge amount of skepticism. The goal of an iran without a Nuclear Weapon<\/a> makes these talks worthwhile. On the issue your question has is this a turning point for europe in terms of terrorism . I would argue that we turned some time ago. Maybe britain in particular because of the appalling attack that is took place in 2005 but there have been attacks elsewhere, but since i have been Prime Minister<\/a> theres probably been at least one major plot every year by the significant nature that we have managed to intercept, stop and prevent. The awareness of the scare and the challenge we face is absolutely there across government, across parliament across the different Political Parties<\/a> in the police and Intelligence Services<\/a>. I think there is an opportunity for countries in europe who have up until now been less effective to work with them and make sure that we share knowledge and skills because when you say how do you the turning point is making sure your legislation and making sure your Police Services<\/a> have the capability you need. Making sure you have programs that can channel extremists away and deradicalize them and making sure youre better integrating your communities. It means doing all of those things. I very much agree with what barack says about the importance of building strong and integrated societies. I made a speech a couple of years ago about this saying it had been a mistake in the past when some countries had treated different groups and different religious groups as sort of separate blocks rather than trying to can you serve at the highest levels of the armed forces. You can sit on the bench as a somewhere. Ive got in my cabinet someone just like that who in two swrrgs the family has gone from arriving in britain to sitting thats vitally important as is combatting unemployment combatting poverty. Heres, i think, the really determining point. You can have tragically people who have had all the advantages and all the Economic Opportunities<\/a> who still get seduced by this poisonous radical death cult of a narrative weve seen in recent weeks. People have gone to syria and made threats back at home who have had every opportunity and every advantage in life in terms of integration so lets never lose sight of the real enemy here, which is the poisonous narrative of averting islam. That is what we have to focus on and recognize and, of course we help ourselves in the struggle if we create societies of swren win opportunity. I dont think either of us are trying to enunciate some new doctrine. The doctrine that i approach this with im sorry to disappoint you, but i take a simple approach to this. Ever since weve been making telephone calls to each other or mobile phone calls to each other or contacting each other on the internet, it has been possible in both of our countries that extremists in my country by a signed warrant by the homeland secretary to listen to a call between two terrorists to stop them in their activity. In your country, a judicial process weve had our own. Were not asking for we believe in very clear up front doors through Legal Process<\/a> that is should help to keep our country safe. I have been Prime Minister<\/a> for four and a half years, and i have seen how our intelligence southwests work. I know that some of the blocks that get prevented, the lives that get ciaed, there is a very real connection between that and the capabilities that our Intelligence Services<\/a> within the law used to defend our people. Can i just be clear, is that based on specific intelligence . Should people be concerned about doing their daily activities this weekend, and do you regard the terrorist attack on the soil as almost inevitable . Mr. President , you say there is a dialogue underway with the big american tech companies, but do you share the Prime Minister<\/a>s view that the current threat environment is so severe there does need to be a swing of the pendulum a little bit maybe from privacy towards counterterrorism and that this area of private encrypted communications is a very dangerous one potentially in terms of sort of letting dialogue between terrorist groups . The issue of the threat we face as i said, the level has been set by an independent Expert Organization<\/a> and that these things have been done for motives literally than to look at the evidence that is there about terrorist threats and to set the level when the level as is at the moment eight is the severe. That means that the authorities believe an attack is highly unlikely. If we believed it was imminent you would move to the next level, which was critical. You know we clearly do face a very real threat in our country. I mean, in recent months, as i was discussing with the president , weve had a number of potential attacks averted, for instance on british Police Officers<\/a> so that is the threat picture. Its regularly reviewed regularly updated, but it shouldnt be moved unless there was evidence to do so. In terms of the protection to the Jewish Community<\/a> and indeed other communities and it is sensible measures to make sure we do what we can to reassure those communities. Its for holding up times the people that stand together with one community that can be singled out. They were jewish. Its very important that we speak and stabbed up for those communities and give them the protection they deserve. Because things are so much more dangerous, the pendulum needs to swing. We need to find a specific framework whereby our publics have confidence that our governments can both protect them and not abuse our capacity to operate in cyberspace and because this is a whole new world, as david said the laws that might have been designed for the traditional wiretap have to be updated. How we do that needs to be debated. Both here in the United States<\/a> and in the u. K. I think were Getting Better<\/a> at it. I think were striking the balance better. I think that the companies here in the United States<\/a> at least recognize that they have a responsibility to the public but also want to make sure that theyre meeting their responsibilities to their customers that are using their products, and so the dialogue that were engaged in is designed to make sure that all of us feel confident that if there is an actual threat out there our Law Enforcement<\/a> and our Intelligence Officers<\/a> can identify that threat and track that threat at the same time that our governments are not going around dishing into whatever text you might be sending, you know on your smartphone and i think thats something that can be achieved. There are going to be situations where there are hard cases, but for the most part those who are worried about big brother, sometimes obscure or deliberately ignore all the legal safeguards that have been put in place to assure peoples privacy and to make sure government is not abusing these powers, and on the other end, there are times where Law Enforcement<\/a> whose job it is to protect the public arent thinking about those problems because were trying to track and prevent a particular terrorist event from happening. Its useful to have civil libertarians and others tapping us on the shoulder in the midst of this process and reminding us that there are values at stake as well and i think david and i welcome that kind of debate. The technologies are evolving in ways that potentially make this trickier. If we get into a situation in which the technologies do not allow us at all to track somebody that were confident is a terrorist. If we find evidence of a terrorist plot somewhere in the middle east that gets us back to london or new york we have specific information. We are confident this individual or this network is about to activate a plot and despite knowing that information, despite having a phone number or despite having a social media address or email address, that we cant penetrate that thats a problem. Part of it is a technical question. Overall im actually confident that we can balance imperatives and we shouldnt feel as if because we just have seen such a horrific attack in paris that suddenly everything should be going by the way side. Unfortunately, this has been a constant back drop and i think will continue to be for some time to come, and we have to make sure we dont overreact but that we remain vigilant and are serious about our responsibility. Thank you very much. Appreciate it. John harwood at the white house where we have been listening to an hourlong press conference by president obama and british Prime Minister<\/a> David Cameron<\/a> devoted entirely to security issues. It closed on a note of discussion about where the boundaries should lie between security and privacy. The president said we do not need a pendulum swing in the wake of the paris attacks towards security concerns over previousty, but he said we need to modernize and adapt to keep pace with technology and prevent a situation where the United States<\/a> government doesnt have the technical ability to penetrate a known plot that might have been uncovered in an earlier point. The president defended himself and David Cameron<\/a> against the idea that their policy on secure had less space for the development of further extremism and the training of foreign fighters to come back to europe or perhaps the wraits and then finally, Prime Minister<\/a> cameron and president obama were united on the opposition that they share to for additional sanctions against iran. They both held out the possibility that this could blow up the negotiations that they are undertaking, even though those negotiations the president said have less than a 5050 chance of the success that additional sanctions would end those negotiations and foreclose a significant possibility of getting iran to agree to a verifiable program to that would show that they were stopping their Nuclear Development<\/a> program. Its been a busy day on the nyse. The market is on the up side. Basically the Dow Jones Industrial<\/a> average is trading up about 80 points. Just wered half a percent in the green. S p outpacing that though. Up threequarters of a percent. The nasdaq is up almost threequarters of a percent. The winner by far is the russell 2000 with a 1. 1 gain on the trading day. Were also watching interest rates, of course with the yield on that tenyear note still down below the 2 mark. Well get you you want to date on all the Market Action<\/a> and some of the big stories of the day when ty and i come back on power lunch. Push your enterprise and you can move the world. But to get from the old way to the new youll need the right it infrastructure. From a partner who knows how to make your enterprise more agile, borderless and secure. Hp helps business move on all the possibilities of today. And stay ready for everything that is still to come. Were going to get started with one of the big stories of date. Halted throughout the day. Thats the big currency broker. We dont know when this its going to open. Give us the latest. Youve been doing work on the floor, and sarah has as well. This 1. 49. Those were preopen trades. It officially is halted around 12. 63 or so. The New York Stock Exchange<\/a> all morning. Its not officially opened here. The bottom line is they had big losses. Their customers had big losses in the tune of more than 225 million. Theyve got to raise some money very, very fast. The question is how can they raise some money . David faber reporting earlier that they are in negotiations with jeffreys for potential loan of up to 300 million. Maybe a loan or equities. Thats part of the negotiations. We dont whan it is but you can put two and two together. The big issue, of course, was the speed of the move as well as how fast everything happened sxshgt leverage. 50 times leverage. Thats 2 margin. Just think of that. With 100 you could control 5,000 in foreign exchange. They issued a press release saying they didnt expect material losses from the swiss franc move, and there you see the stock after dropping the last couple of days is trading to the up side. The one question i have is why wasnt there people have asked me. Why werent there stocks thats prevented them and i think what happened i dont know the answer, but it happened so fast. In seconds that you could have easily gone through the stocks. There literally was no time for anyone to adjust them. You have also been doing research on how long this stock could remain halted and it could be halted for a long time. There are stocks that have remained halted for days and even weeks on end. To get the loan or equity or whatever they are negotiating zoosh how much equity at this . 12 was about 500 million. Thank you. Appreciate it. Now that its no longer pegged to the your wroe does it make it did go to parody and thats what sarah has been working on so hard today . Sarah. We thought big news already with the euro plunging against and recovering a little but the now in vogue view on wall street is that the euro will fall so hard it will go all the way down to parody with the dollar. One euro to 1. Last time we saw that was back in 2002. Why . Well most people are already pretty bearish on the euro predicting that a qe stimulus from europe as soon as next week, along with the weak economy there would drag down the euro but the Swiss Central Bank<\/a> just added fuel to that trade. Now can you go to parody a lot sooner than even expected. Many think the swiss did this because they were preparing for ecb qe to be announced next week. All of that weighs on the euro, pushes it down even harder. We went below 115 even earlier. Chris suisse called the swiss move an earthquake. Now if it happens in a quicker time period here and days like today if we continue to have those, it could be awfully painful for multinationals. Watch out as we are in earnings season, and especially for some of the Company Guidance<\/a> on this and with how pessimistic they are about what they call the macrochallenges and a lot of times thats just ceo speak for foreign currency. The dollar is the big winner here as can you tell. If theres any disappointment or any sense the ecb underwhelmed, that could snap so hard the other way. It could just be warm. Obviously, its working out for people. Even though its crowded right now. Watch out for any pullback. Sarah, thank you very much. Sarah. Up to you, todd. Thank you very much. U. S. Consumer prices dropping. 4 last month. Biggest drop in more than six years, and its leading to some deflation fears. Deflation is basically closed by a drop in money and credit supply. It comes from a dupe in government, personal and investment spending. A falling euro is one of them i would assume because it means that the prices of european import goods to us are much lower. Right. Stronger dollar. The nations inflation rates falling to the lowest level in more than five years, but that was expected. Whats more interesting, more compelling here is that when you take out food and energy to socalled core index deflation, still fell, and that presents a challenge to the fed. The headlines. Down 04. At least on a month basis, that is deflation, but the your over year is up 0. 8 . Very anemic. The core unchanged up 1. 6 year over year. You can see whats happening there, the core rate has been falling, and even the steady declining slope there of the core rate is really of concern to the here are the details. Gasoline falling 9. 4 and folks, there is more to come. The january index should also have a bunch of that in there. Apparently some discounts. New cars down. For scenes its moving further away from the 2 inflation target. A target it has not hit in about two years. The puzzle . Unemployment falling and, yet, no sign of inflation. No bond yields that theres little or no deflowings on the market. There are also concerns that overseas economically we add deflation and could end up the u. S. Prices. Tyler mattison just talked about that. Unless there are some signs of deflation moving towards the feds 2 target or remember theshgs fell in december. The fed could well put off rate hikes. If not for part of this year. Maybe until next year. Meanwhile, Consumer Confidence<\/a> soared, in part because of the inflation numbers. There is an upside. One more piece of news here. The cola increase the cost of living increase out today. 1. 7 . Its the low inflation number but remember a couple of years back, it was zero. All right, steve. Thank you very much. Steve liesman reporting. Stocks rebounding just a bit today, and there you see the s p sectors, all ten of them higher. Well take a look at that and more with the time remaining on power lunch. Dont go away. Am never getting married. Never. Psssssh. Guaranteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those. We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Zoirchlgts wells fargo upgraded its stock citing higher price and lower costs. Those shares as a result up by 1. 5 on the days session. The stock is up more than 12 just over the course of the past month, tyler. Back to you. Thank you very much. It may not feel like it to us but noaa the weather forecasting group, confirming today that globally 2014 was the warmest year on record. Wall streets weather man says there could be some cold on the way for the u. S. , and that could be good news for the energy market. Lets talk to dan leonard, senior meteorologist with Weather Services<\/a> international. Dan, welcome. Are you thinking theres a strong snap over the cold months yet to go . Weve had a relatively mild winter. Right out of the gates we were really cold in november. That got traders excited. Theyve been asking where is the cold . We had a little bit in early january, but so far we havent had too much in the way of big arctic blasts like we had last year. Thats all about to change, we think, as we head late into january so the last few days of january and into february. Pretty good indications right now, though, that well have a big arctic air mass spill down into the lower 48. Similar in magnitude to a lot that we had last year so traders are starting to getting excited that maybe were starting to turn the corner here and get rid of the mild weather that weve had. If this does happen where would this show up most dramatically and immediately . Nat gas or oil . Heating oil. Nat gas for sure. Heating oil is really geared more towards or tied more into the crude oil market so thats more geopolitical world factors that factor into the heating oil, but natural gas is really just the u. S. We dont really export a lot of natural gas. Stocks move to the up side today. Western almost up triple digits. Lets talk to nick chief Market Strategist<\/a> at convergence group. Welcome, nick. Its good to see you. Give me your reaction to the market today in light of what the swiss did yesterday, and the ecb meeting is looming very large now next week next thursday. Absolutely. Were seeing a return to volatility thats more typical to the period before the financial crisis system weve seen for the past five years, and youve seen a lot of different plays around that. The swiss move yesterday quite dramatic. I think were getting a snap back after that very big shock that we got yesterday. Youre right, the big eths next week are going to be the ecb meeting and the davos meeting where all the World Leaders<\/a> get together and we have a lot of headlines out of that as well. What do you like in this market given the fact that those who events are still hfd us . A couple of different points. The first is as far as sectors go health care has been a very important leadership group. We would stay with that. The flip Side Technology<\/a> is kind of light. We think that Lower Oil Prices<\/a> will help Consumer Spending<\/a> in the tech sector. Growing share of wallert there. One final point, very important. You have to maintain Bond Exposure<\/a> in this market because effectively, europe and japan are exporting deflation to the u. S. In terms of bond prices and bond yields. Thats a great place to be. Nick larks thank you so much for joining us. Have a great long weekend. You too. The market right now, the dow is up 102 points. We have a triple digit advance in the Dow Jones Industrial<\/a> average. What a fascinating week it has been sue, and next week with that ecb meeting holds the promise of even more fascinating stuff to follow. There you see the industrial the s p all in the green today. That will do it, folks, for this days edition of power lunch. Its going to be interesting going into the close. Remember, its a threeday weekend for the markets. Street signs starts right now. Have a good weekend. A rough week trying to end on a bit of i high note. Welcome to street signs. Stocks bonds, oil all on the move this week. Your full playbook ahead. The latest news on how many oil rigs are being shut down in america, and what the heck is a dupe and why is it so hot . Well dig into that. We will indeed. Five days in the red, and almost six straight. There was green. Before we say stocks are still on track. Both gold is interesting, brian. Its back on its feet this year. Getting a fourm","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801602.us.archive.org\/31\/items\/CNBC_20150116_180000_Power_Lunch\/CNBC_20150116_180000_Power_Lunch.thumbs\/CNBC_20150116_180000_Power_Lunch_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240621T12:35:10+00:00"}