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Quest Means Business
Down Jones Rallies More Than 360 Points
Aired December 04, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
PAULA NEWTON, HOST: And the gavel goes down on a stellar day on Wall Street. The Dow Jones rallies more than 360 points. You're not reading that
wrong. Now I want some perspective. It's only up about half a percent when you count yesterday's gains. But heck, it's a Friday. We'll take it. And
that is on the back of a big jobs report.
It is Friday, December 4th.
(BEGIN VIDEO CLIP)
The murder of 14 people in California is now being investigated as an act of terror in connection with ISIS.
In business news, U.S. jobs growth is strong in the lead up to the FED's decision on interest rates.
And Michael Bloomberg and Robert Redford, yep quite the odd couple telling me cities can be hugely influential in tackling climate change.
(END VIDEO CLIP)
NEWTON: I'm Paula Newton in for Richard Quest, and this is Quest Means Business.
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NEWTON: Good evening. We'll have full coverage of the giant rally on Wall Street in a moment.
But first, tonight, rapid and very substantial developments in the San Bernardino mass shooting.
(BEGIN VIDEO CLIP)
NEWTON: The United States Federal Bureau of Investigation, the FBI, now says the massacre which claimed 14 lives at an office party on Wednesday is
being looked at as an act of terrorism.
Speaking in the last hour, an FBI assistant director summed up what's been uncovered so far.
DAVID BOWDICH, FBI ASSISTANT DIRECTOR: We have uncovered evidence that has led us to learn of extensive planning. Obviously we've uncovered evidence
of explosives, multiple armaments, you know that - you know the ammunition that was out there, the high-powered weapons, the explosive devices. We are
continuing to go down the path to ensure that we find all of the evidence that pertains to this matter.
NEWTON: Now that all comes after it was confirmed that the female shooter pledged her allegiance to ISIS leader Abu Bakr Al Baghdadi on face while
the massacre was ongoing.
(END VIDEO CLIP)
NEWTON: Now a short time ago, the FBI Director James Comey admitted that even the authorities aren't entirely clear as to what's going on in this
case.
(BEGIN VIDEO CLIP)
JAMES COMEY, FBI DIRECTOR: There's a lot of evidence in this case that doesn't quite make sense and so we're trying to be very thoughtful to
understand it and to make sense of it so we understand the full extent of what we have here.
(END VIDEO CLIP)
NEWTON: Now we want to get the latest on the investigation from Chief U.S. Security correspondent Jim Sciutto in Washington. I mean Jim, you were the
first to break a lot of this news. I have to tell you, my jaw was dropping all afternoon. I mean, in terms of actually parsing what is most
significant here, bring us up to date about what we learned in the last few hours.
JIM SCIUTTO, CHIEF U.S. SECURITY CORRESPONDENT: Well the FBI said today that they have good reason to investigate this as an act of terrorism.
That's not definitive. But they have a lot of signs pointing in that direction. Let's give you some.
(BEGIN VIDEO CLIP)
SCIUTTO: One, we were first reported earlier today that the wife of the shooter, one of the two attackers, Tashfeen Malik, that she posted to
Facebook under a different name, pledged allegiance to ISIS leader, Abu Bakr Al Baghdadi as that attack was underway. That -- a very big clue, no
question.
Prior to that, we had reported that there were interceptive communications in the past between the other shooter, Malik's husband, Farook, between him
and known terrorism suspects - subjects I should say abroad. Not considered senior operatives, not leaders but subjects, sympathizers in the Jihadi
community. That's significant, as well.
This is leading investigators down a path that this was a - that they were radicalized, these two shooters, and inspired by a group such as ISIS. Not
directed or given explicit directions, operative plans, et cetera, by ISIS, and that -- that is really something of, frankly, equal concern for U.S.
Intelligence officials, counterterror officials. Because frankly, both could conceivably end up with the same result, an attack on U.S. soil or
attack in Europe and elsewhere.
And we've seen both possibilities, we've seen both situations like that play out in the past. Either with direction or without direction. So this
has indications of a lone wolf attack.
(END VIDEO CLIP)
SCUITTO: And to be clear, the FBI also said today they're not aware that they were part of a network here in the U.S. a cell. They're also not aware
of any additional attacks planned here to give some assembly ambulance of comfort.
(BEGIN VIDEO CLIP)
SCUITTO: But I'll tell you, having just been in Paris a couple weeks ago, have been talking to U.S. intelligence and counterterror officials for
years about this problem, they've been warning about this very thing for some time. ISIS or extremist-inspired attacks on U.S. soil, and they have a
lot of indications now that that's what we saw in San Bernardino.
(END VIDEO CLIP)
[16:05:00]
NEWTON: Yes, Jim, as you clearly point out, there's no measure in relief in the fact that they're saying, that look, they didn't have direct contact
with ISIS. ISIS got what they wanted if this turns out to be true. ISIS inspired on U.S. soil. Is this a game changer?
Look Jim, I know we talk about this all the time, but 14 people murdered, several injured and all the signs now pointing to ISIS.
SCUITTO: You know the game -- the word game changer, I'm like you, always reluctant to use it to some degree, as it's probably over used.
(BEGIN VIDEO CLIP)
SCUITTO: But I'll tell you, having just been in Paris a couple weeks ago, that attack was a game changer. Because it showed ISIS ability to plan and
coordinate a multiple assailant attack and kill dozens in that case of people in a foreign capital.
So now you have -- you have fewer shooters, fewer deaths, but still a significant death toll. The highest death toll on U.S. soil by a terror
attack if it's confirmed to be a terror attack since 9/11, one more than the Fort Hood shootings six years ago. But that is something that terror
officials have been warning about for some time, and now we see it.
So in that sense, it is a game changer in that it looks to be -- it may very well be the realization of one of their fears that ISIS could or a
group such as ISIS could inspire an attack like it on U.S. oil. And that's, frankly, a worrisome development.
(END VIDEO CLIP)
NEWTON: Yes. And there's no denying that it's rattling all of us in our everyday lives. Our Jim Sciutto, continues to stay on top of this story,
appreciate it.
SCUITTO: Thank you.
NEWTON: Now as if all of those developments weren't enough. This afternoon on T.V. screens on almost every network, incredible scenes.
(BEGIN VIDEO CLIP)
NEWTON: Earlier on Friday, hordes of reporters including some from CNN, were allowed to enter the killers' home and rifle through their
possessions. Our chief media correspondent, Brian Stelter, is here to kind of go through it with us. I mean look at these pictures, it's like we got a
guided tour. Brian what were you thinking when you saw all this happen today?
BRIAN STELTER, CNN CHIEF MEDIA CORRESPONDENT: I don't think we've ever seen anything like this. And on occasions when this could potentially happen, I
don't think it ever has, but if it could it wouldn't be broadcast live. That was another distinguishing factor today.
MSNBC, one of the cable news channels in the U.S., was showing it live. They actually showed a picture of a baby. They also showed a driver's
license, you could see a social security number possibly from one of the suspect.
MSNBC has now come out and said they regret that. They wish that had not been transmitted live. It should have been reviewed first.
Now CNN says we were more careful not to actually show, for example, a driver's license, identifying papers. But to be able to be in this home
which feels like a crime scene, it's something that made people uncomfortable and I understand why.
NEWTON: Yes, Absolutely. A lot of us understand why. I just want to give you a flavor of what was going on live here on CNN today. Let's take a
listen.
UNIDENTIFIED MALE: I tell you, I am so shocked, I cannot believe it. This is detective 1101 for crying out loud. And we have - now we - it looks like
dozens of people in there totally destroying a crime scene which -- which is still vital in this investigation.
(END VIDEO CLIP)
STELTER: Now the key piece of information here is the police say they were done with the crime scene.
NEWTON: I know - I know.
STELTER: And the landlord let these journalists in. I know that sounds crazy, but it's true. The landlord did open up and make it available.
(BEGIN VIDEO CLIP)
STELTER: Now there were some - there were some people saying that the media rushed in, that maybe it was hard to control. But the bottom line here is
the law enforcement says they were done with this crime scene. As Harry Houck said however, it seemed like there was evidence left. It seems like
there weren't enough evidence of fingerprinting being done in the home.
So there are lots of questions about what was and what was not done at the location before the media arrived.
NEWTON: Yes, and for those of us who have spent way too much time as court reporters, how many times are we in court and we listen to the fact that
they go back to the scene of a crime like that for more evidence?
STELTER: Right.
NEWTON: I mean, the FBI has said they just shipped certain elements of evidence to Washington for further analysis.
STELTER: Absolutely. You know, and I think we see journalists in a situation like this, a lot of people are inclined to blame the journalist
for digging around this content, digging around -- the people's possessions.
(END VIDEO CLIP)
STELTER: I understand that instinct. What I would point out, though, is that journalists do in many cases do this kind of reporting, maybe not
literally in a suspect's home, but do the digging that sometimes we see behind the scenes. It's that saying about making the sausage, that it's not
always pretty to see the sausage being made. Well that is true in journalism. We need to stand up for the ability to investigate and do this
kind of reporting.
However, to be broadcasting live pictures is a whole other part of the equation. And to show live pictures of a child's photo, that, again, is
really a moment where you cross a line. I think a lot of people are criticizing that decision by MSNBC today.
NEWTON: Yes, a child by all account, obviously completely innocent in all this. Brian Stelter we'll continue to follow the story. Which I'm sure will
have a lot more media implications going forward. Appreciate it.
STELER: Thanks.
NEWTON: And we will return to business news just ahead.
(BEGIN VIDEO CLIP)
NEWTON As Wall Street, yep, quite a rally. The Dow soars as investors cheer some good economic news and we'll tell you what's driving that stock surge.
(BEGIN VIDEO CLIP)
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(END VIDEO CLIP)
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[16:102:23]
NEWTON: U.S. stocks soared today on the back of a great jobs number. But I'm not sure people predicted it would really be this good.
(BEGIN VIDEO CLIP)
NEWTON: Now take a look at the Dow, closing 369 points higher. Now today's job numbers smashed through expectations clearing the way likely for the
FED to finally raise interest rates.
Now the U.S. economy adding a solid 211,000 jobs in November. And October's job gains were revised up to 298,000. Wow. That's 27,000 more than
initially reported. Now that jobs number means that the FED may have cleared that all-important final hurdle.
Now U.S. economic growth has been, of course, very solid. Inflation is gradually coming back into the FED's target and that's important as well.
Volatility has thankfully calmed down, particularly overseas. Now the jobs market is heading toward what we call full employment. The FED can finish
the job and raise rates two weeks from now if the way everyone's predicting it will. And to get more analysis on that, we want to bring in our John
Silvia, he is Chief Economist at Wells Fargo, and he joins me now from Charlotte, North Carolina.
(END VIDEO CLIP)
NEWTON: Thanks so much for joining us, I appreciate it. I mean I think - I want to get your reaction to the raw data as it were. 'Cause the numbers --
the way the market reacted was kind of stunning. But take us to that jobs number and what you saw when you did a deep dive into those numbers.
JOHN SILVIA, CHIEF ECONOMIST, WELLS FARGO: Well I think you're right to emphasize first the number was a little stronger than consensus at about
211,000. But also they revised the prior month up. In addition, the unemployment rate stayed fairly steady. It didn't rise.
(BEGIN VIDEO CLIP)
SILVIA: And I think the combination of that suggested to the market that the economy, certainly the job market is doing well enough that if the FED
were to raise the federal funds rate 25 basis points, it would not mean a weaker economy going forward. I think also the breadth of the job numbers
were good in many, many different sectors.
So I think you're right Paula to emphasize it was not only just the number itself that was stronger than expected, but the prior revision added a lot
of emphasis to the market.
(END VIDEO CLIP)
NEWTON: And before we get to how this is likely going to affect the FED, you know you guys pointed out in your note, of course, that those
manufacturing numbers were quite weak. If we take the manufacturing number combined with the fact that the U.S. seems to be the only economy on a tear
now and the fact that the U.S. dollar is also on a tear, you know I always sound like I'm negative, I know. But if we go through this, do you still
think it's steady as you go here in 2016?
SILVIA: Well, I think what you're emphasizing, and what we need to be careful especially as investors and observers is the difference between the
export sector in the United States which does have challenges with respect to a stronger dollar and weaker growth abroad, especially in certain
markets.
[16:15:14]
SILVIA: For example, brazil, it's very important to the United States. As contrasted with the domestic U.S. economy which is focused primarily on
consumer and housing, and that is very strong. So there is that great divide there between the export-oriented businesses and the domestic
businesses. And I think once again that that really showed in the numbers.
NEWTON: And in terms of the Fed, I mean really is there any doubt now? It seems that the market has absolutely priced in that hike. If you're looking
at this, and you're Janet Yellen, and you see that inflation back in the target, we're at likely full employment, do you think it's more one and
done? Or do you think they're going to indicate in December that more interest rate rises are on the way?
SILVIA: Well, I think it's pretty much one and done for a while Paul, because I can't see them moving until perhaps June or September of next
year. And so what we're looking for in December is not only raising the federal funds rate but changing that future trajectory of interest rates.
And I think they're going to lower that trajectory because the inflation numbers are rising, but not at such a pace that the fed needs to act
quickly to sort of catch up to the inflation numbers.
NEWTON: All right Mr. Silvia, thanks so much, always great to get your perspective on this on what was really a celebratory day on Wall Street.
Appreciate it.
SILVIA: Thank you.
NEWTON: Now we do want to get another perspective on those Wall Street gains. It was broad based. The S&P 500 and the NASDAQ each climbed 2%. We
want to bring in CNN money digital correspondent Paul La Monica.
I mean - Paul I practically needed a sedative after looking at this stuff. OK, and that was talk about stocks which were up. We'll get to oil in a
second. But what did you see as it played out today?
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yes, this was an obviously very impressive rally. You have to put it in context though. We had a bit
of a temper tantrum Thursday when the market was disappointed with the ECB.
Mario Draghi did speak in New York today. I think he reassured investors that the ECB definitely still is not ruling out more stimulus if the
Eurozone economy weakens. So I think you combine the two and you have elation over the solid jobs numbers, we're finally going to get this rate
hike out of the way. All year, all we've been doing are they going to raise rates, when are they going to raise rates? We've ripped the band aid off.
It's finally done. So I think is a good thing. People aren't fearing the rate hike any more, they just want to get it out of the way.
NEWTON: Yes, you make such a good point. Because the momentum on the market it was doing well, up about 200 points. But it really took off after Mario
Draghi said, Look, why did you guys overreact? We will do what needs to be done. There's a story there about whether or not he actually said what he
was supposed to, but anyway we'll get to that another time.
In terms of looking at the job numbers, you know a lot of people have been upset about wage growth. And that's really what's going to help this
economy have a sustained recovery. I mean I know that you cover this all the time. Main Street isn't doing as well as Wall Street.
LA MONICA: No. they definitely are, wage growth is better but not fantastic, 2.3% in the most recent reading. And obviously, I think we want
to see higher wage growth.
(BEGIN VIDEO CLIP)
LA MONICA: I spoke to one economist this morning who's suggesting 3% is possible next year. And if that happens, the FED could raise rates a couple
of times. I think 3% would be a nice, you know welcome thing for many people on Main Street. But you're right, this is an economy. And it's going
come up in the election cycle I think a lot next year that many average Americans don't feel as confident as you would expect they would based on
stocks roaring the way that they have.
(END VIDEO CLIP)
NEWTON: Yes, and the income and inequality certainly a lot of indicators still have the huge gulf in between them.
I mean, Paul, when we look at the economy going forward in 2016 because it is that time of year when we start to look at it. Are there any things
that analysts are telling you that it really is a big marker, a red line in terms of, look, we can't keep this up?
LA MONICA: People are not as concerned I think about the economy being able to stay as the level that it's been at which isn't great. Again I mean I
think people would love to see GDP even higher and more wage gains and more job gains. The market, though that might finally be at a point where you
know if the market can go on and have this Santa Claus rally and finish 2015 higher, then that would be seven years in a row going back to 2009
that you have this market rally going on. That's getting long in the tooth for any bull market.
So I think we're probably going to have a flat market next year. I think that's what you're going to hear a lot of people saying, especially with
the uncertainty about the election. More volatility -I mean if you look Paula just this week, the Dow had triple-digit point moves every day since
December started. So up big on the 1st then down and down again, and now up again. That could be unsettling for investors that we see all the
volatility return.
NEWTON: Yes, another good point to make and I know a lot of people are telling investors, look, you have to fasten your seat belts through the
next year because it's going to be like that. Paul those were good points, appreciate seeing you here.
LA MONICA: Thank you.
NEWTON: And have a good weekend if I didn't mention it before.
LA MONICA: You, too.
NEWTON: Michael Bloomberg, co-host a historic gathering of mayors from across the world to discussing tackling climate change.
(BEGIN VIDEO CLIP)
NEWTON: My conversation with Michael Bloomberg and actor Robert Redford. That's up next.
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(END VIDEO CLIP)
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[16:22:48]
NEWTON: Former mayor of New York Michael Bloomberg says cities and their mayors are key to tackling climate change.
(BEGIN VIDEO CLIP)
NEWTON: Now Bloomberg co-hosted a summit for local leaders this Friday alongside COP-21 talks in Paris. Now he managed to attract a considerable
turnout. Here you can just see some of the cities whose mayors attended. I mean look at the map. They represented hundreds of millions of people
living in many of the world's major cities. And we should say those major cities are also major polluters.
(END VIDEO CLIP)
NEWTON: I asked Michael Bloomberg who was joined by environmental activist Robert Redford why he thinks action from local leaders is so crucial.
(BEGIN VIDEO CLIP)
MICHAEL BLOOMBERG, FORMER MAYOR, NEW YORK CITY: 50% of the world lives in cities, it will be 70% by the year 2050. Where the people are is where the
pollutants are, and where the solutions to the problems are. And what's done at a federal level gets implemented at a local level. So it's really
the mayors that deliver the services. They deal with the pollutants from transportation, from buildings, from waste management. And even if there's
a power plant 500 miles away from the city, if the mayors can get the people to use less energy, you would reduce the pollutants that that power
plant puts in the air.
So mayors are one very important part. You can argue it's a three-legged stool. I can only think of two of the legs. But what the national leaders
do get implemented at a local level. And I think the most important thing here is that the public sees the national leaders there, knows there's a
problem, and then they through their mayors will demand solutions because it's their children who are breathing the bad air. And they're drinking the
water that can give you stomach cancer. They're looking at a -- not a great future for their grandkids and they say I'm not going take this anymore. I
want it fixed. They turn to the mayors, and the mayors turn to the federal government. Is that fair?
ROBERT REDFORD, ACTOR: That's very fair. I don't have the power to create solutions, but I can help draw attention to solution that's are there. And
I think that what Mayor Bloomberg just said about the role that mayors can play I think is really key. Because I think that there's been a lot of talk
over time, but the solutions have been kind of outstanding. And it's time now for some solutions.
[16:25:03]
And I think the idea of retrofitting -- if you want to think about what you can do, if it's not that costly, that could save money and save energy,
think about just the idea of retrofitting buildings that already exist. And you know, you got pollution outside with power plants and all that, that's
another thing.
But inside the cities, for so many years it was my impression that cities were being blamed for pollution. Now I'd like to see cities be celebrated
for solutions to that problem. And I think what Mayor Bloomberg is doing and what he said is the way there.
NEWTON: You know Mr. Redford, you've been at the forefront of the natural resources defense council for a while. I know you really engage with the
local communities. But when people are sitting in these cities - and I'm not going to start a rant on recycling. But we know that many times we do
what we can to try and help. And yet sometimes the solutions just don't seem to be enough. I mean, what do you tell people in local communities who
want to be a part of this and help their cities get cleaner?
BLOOMBERG: I would argue every little bit helps. Not everything works. You've got to keep trying. There are no simple solutions to complex
problems. We all have to do our part, and some countries, some cities will do more than they promised. Some will do less than they promise, some won't
promise at all but will deliver. But we have a worldwide problem, and everybody's got to do their part.
REDFORD: I agree. I think the idea of solutions has been sort of outstanding. And I think what we're interested in now is looking at
solutions. No more talk. Talk's -- enough talk. The meter's ticking, and time's running out and the issue is too urgent. So I think that action is
called for, and solutions are the answer. And I think mayors are in a wonderful position to move that thing along.
NEWTON: And I'm going ask both of you, sometimes for businesses this can be a really tough sell. They're the drivers of the economy, and they're the
ones creating the jobs. They see sometimes the climate action as a zero-sum game. It's going to take away from development in the cities. Mayor
Bloomberg, you were quite successful in getting businesses on side. What more can be done at that level?
BLOOMBERG: Well, in New York, we've brought greenhouse gases down something like 20%. And New York has one of the lowest unemployment rates and the
fastest growth rates in the United States. The truth of the matter is being pro-environment creates an awful lot more jobs than it takes away. And in
any case, having a job as part of what you want for yourself and your family but also a long, healthy life is something you have to have. The
pollutants in the air, forget about what happens in the year 2050, they reduce your life expectancy today. And you have to do something about it.
So it's not an either/or thing. I would argue if you have to do something, if you don't fix the environment, you're not going to be able to help
people. Because the people who need jobs, they don't get anything if they have a job and they die ten years earlier. They need to have the ability to
take care of themselves and to be healthy and then the job they need at the same time. But I think history shows -- look at New York City. Life
expectancy in New York City is three years greater than the average across America. And that -- all that came in the last dozen years. A three-year
increase in life expectancy while New York was certainly the most pro- environmental city in the country.
(END VIDEO CLIP)
NEWTON: I had called them the odd couple. It's not that odd because they have been at this environment game for a long time. Most of them telling me
that they're quite optimistic for what can come out of those Paris talks next week.
Now, going on to other news.
(BEGIN VIDEO CLIP)
NEWTON: Now that links have been made between one of the shooters and ISIS, the FBI is investigating the San Bernardino massacre as an act of
terrorism. We'll have more from the scene in California just after the break.
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(END VIDEO CLIP)
(COMMERCIAL BREAK)
[16:47:29] NEWTON: Hello, I'm Paula Newton in New York and these are the headlines this hour.
The woman involved in the murder of 14 people in California pledged allegiance to ISIS on her Facebook page during the massacre.
Tashfeen Malik and her husband Syed Rizwan Farook were killed by police hours after opening fire at a holiday party.
Those who died were between the ages of 26 and 60. A further 21 people were wounded.
(BEGIN VIDEOCLIP)
JAMES CORNEY, FBI DIRECTOR: We're here today because we want to make sure you understand that this is now a federal terrorism investigation led by
the FBI.
And the reason for that is that the investigation so far has developed indications of radicalization by the killers and of a potential inspiration
by foreign terrorist organizations.
And we are spending a tremendous amount of time as you might imagine over the last 48 hours trying to understand the motives of these killers and
trying to understand every detail of their lives.
(END VIDEOCLIP)
NEWTON: Now, in yet another extraordinary development. Malik and Farook's landlord allowed the media to enter their apartment and rummage through the
possessions.
This is a place that according to authorities contained bullets and bomb- making material. The home today is now littered with children's toys, a child's book about the Quran, shredded documents and I.D. cards.
Belgian authorities are looking for two suspects in connection with Salah Abdeslam and the only known suspect in the Paris attacks who survived.
The two men, pictured here, are said to have traveled to Hungary with Abdeslam in September. Authorities say the two men used fake identities.
Indian Prime Minister Narendra Modi says he is pained at the devastation caused by flooding in the south of his country.
More than 270 have been killed and 120,000 others rescued as unusually heavy monsoon rains lashed the state of Tamil Nadu.
It could get much worse - more heavy rainfall is forecast for the city of Chennai.
Going back to our top news story now -- the investigation into the San Bernardino mass shooting. In the past few hours we've learned that the FBI
is investigation the massacre as an act of terrorism, and that's after it confirmed the female shooter pledged allegiance to the leader of ISIS on
Facebook while the shooting was ongoing.
[16:35:05] Pamela Brown has a report from San Bernardino.
(BEGIN VIDEOCLIP)
DAVID BOWDICH, ASSISTANT DIRECTOR, FBI LOS ANGELES: As of today, based on the information and the facts as we know them, we are now investigating
these horrific acts as an act of terrorism.
PAMELA BROWN, CORRESPONDENT: For the first time, the FBI is calling the attacks in San Bernardino terrorism.
Surrounding the chaos, investigators say Syed Farook's wife Tashfeen Malik was on Facebook pledging her allegiance to ISIS leader Abu Bakr al-
Baghdadi. Malik's post was mad on an account with a different name, one official said.
BOWDICH: We have also uncovered evidence that these subjects they attempted to destroy their digital fingerprints.
BROWN: CNN has learned two smashed cell phones believed to be the couple's were recovered from a garbage can near one of the crime scenes.
And a computer found at the shooters' home was missing a hard drive. Investigators suspect it might have been destroyed.
Authorities hope the digital footprint they can recover will reveal more about the motive.
BOWDICH: That will take time but I truly believe that's going to be the potential gold nuggets, but we just don't know yet.
BROWN: Inside Farook's house, police found a virtual bomb-making laboratory with smokeless powder and remote control cars like the one found
in the suspect's car.
They also found a cache of nearly 5,000 rounds of ammunition. The family's attorney tells CNN that while they were aware Farook and Malik had guns,
there was no warning sign they had been radicalized.
DAVID S. CHESKEY, ATTORNEY FOR FAROOK'S FAMILY: Having a good amount of ammo doesn't mean that you're planning an attack. There wasn't anything to
the family to show or signify that he's doing something out of the ordinary.
BROWN: U.S. government officials tell CNN Farook traveled to Saudi Arabia twice in 2013 when he met his Pakistani-born wife there and again in 2014.
A board (ph) official says Malik was not on any watch lists or under suspicion for extremist activity.
How much are you worried about the dynamic of the marriage? Because there's a lot of curiosity there and people - some people - are saying that
perhaps the wife may have influenced him.
Can you give us any more insight?
BOWDICH: I've been asked that and I don't know the answer - whether she influenced him or not. Being a husband myself we're all influenced to an
extent, but I don't know the answer.
BROWN: But if what you've learned about her, has that influenced your belief more so that this was an act of terrorism as you learned more about
her?
BOWDICH: We're investigating it as an act of terrorism for good reasons.
(END VIDEOCLIP)
NEWTON: And that was our Pamela Brown there in San Bernardino. And more news about this story in to CNN.
We've just had a statement from Facebook on the posting made by that female shooter. Now, it says that there was a post that went up around 11 a.m. on
the account Wednesday that violated the company's community standards.
And those standards of course mean that it prohibits people from using Facebook to promote terrorism or celebrate and glorify violence.
Now it was taken down Thursday. The spokesperson couldn't get into the details about the nature of the post other than to say it violated the
standards.
The official said Facebook is of course cooperating with law enforcement officials.
Another very dramatic development there with Facebook confirming that that post did come at the exact time that those people were murdered at that
holiday party
Now, the attackers' home as we were saying earlier was opened up by the landlord, incredibly, after law enforcement officials and the FBI said that
they were done with that crime scene.
Now the media saw everything from religious books, family photos and baby items, presumably belonging to their six-month-old daughter.
Our correspondent Victor Blackwell was there.
(BEGIN VIDEOCLIP)
VICTOR BLACKWELL, ANCHOR AND CORRESPONDENT: The first glimpse inside the lives of the San Bernardino shooters. The killer couple's landlord prying
open the boarded-up doors to allow media to look inside the home left behind by Syed Raheel Farook and Tashfeen Malik.
An extraordinary scene with no objection from the FBI.
BOWDICH: We executed a search warrant on that apartment and last night we turned that over back to the residents.
Once the residents have the apartment and we're not in it anymore, we don't control it.
DOYLE MILLER, LANDLORDS: They called me late last night.
BLACKWELL: What did they say?
MILLER: He said no harm for me to go in.
BLACKWELL: Landlord Doyle Miller reacts to the scene left behind by investigators in their search for evidence against the San Bernardino
shooters.
MILLER: This is unbelievable.
BLACKWELL: Around the apartment there are signs of life familiar to families everywhere - clutter in the kitchen, toys belonging to the
couple's six-month-old daughter are scattered on the floor.
But it's here in the couple's bedroom closet where you find a sign of the intense investigation that took place as CNN's Stephanie Elam discovered
during a tour of the home.
STEPHANIE ELAM, CORRESPONDENT: Here you can see where they smashed up into the ceiling to take a look to see what was up there.
And it does appear, based on how much debris is on the ground, that there was an effort to get up there and make sure that they checked every crevice
of this back bedroom.
BLACKWELL: Personal identification and other documents belonging to Farook's mother were left scattered on the bed.
[16:40:03] Evidence of the couple's devout faith are also seen throughout the apartment. A prayer rug on the wall, various books on the subject of
Islam, even prayer beads left on the edge of the bed.
And here in a corner, the crib belonging to their baby girl left with her grandmother on the day of the shooting, a haunting reminder of what the
young family might have become.
(END VIDEOCLIP)
NEWTON: That was our Victor Blackwell there. Now, in a moment, returning the business news and crude oil prices plunge after OPEC remained bitterly
divided.
We'll tell you the outcome of that marathon meeting in Vienna. That's just ahead.
(COMMERCIAL BREAK)
NEWTON: We said it enough during this show, it's been a huge day for economic numbers as well as the jobs report. Global markets were also
rocked by news that OPEC is going to keep that oil flowing.
Member nations failed to reach an agreement on how much oil to produce despite falling prices. Now that means they've taken no action and will
keep production levels as they are.
Now that sent oil prices tumbling again today. Just take a look at how much Brent has fallen in this year alone. And that is an unbelievable
graph.
And you know what? I don't want to put too much fine a point of it, but journalists who were at that meeting in Vienna basically said it was
division, acrimony and sheer chaos.
Now OPEC leader of Saudi Arabia is apparently unswayed by desperate pleas from less affluent nations like Nigeria and Venezuela to cut production.
And our emerging markets editor John Defterios explains why.
(BEGIN VIDEOCLIP)
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: No change at all in fact, Paula. Some of the investments were to kind of grasp on to some slivers of
hope here that with their back against the wall, that the OPEC producers would come out with a new decision and try to trim production.
But they did exactly the opposite. And this sends two signals - first and foremost that the Saudi Arabian strategy adopted this time last year to
flood the market with crude to five per market share prevails. They have support from the other Gulf producer here on the Arabia Peninsula, being
Kuwait, Qatar and the UAE. You can even add Iraq to that list because it's boosting production.
And number two, they are lacking consensus from within, Paula. They can't reach a deal here to even raise their quota.
They're producing around 31 1/2 billion barrels a day, but the official quota is at 30 billion barrels a day.
And they said they're just going to go with a new definition - the current actuals. The current actual production instead of trying to change the
quota.
[16:45:01] That tells us a lot about dissension in the ranks.
And the bottom line is when oil was above $100 a barrel for OPEC, they were making $1.2/$1.3 trillion dollars in terms of export earnings.
This is painful, Paula. We're looking at a cut in that number of about $600 to $700 billion of prices hovering around $40 a barrel.
So we did not see a consensus come out of this. Indeed the low-cost producers of the Middle East are going to fight for market share and
challenge Russia and the United States in 2016.
NEWTON: Yes, John, that's quite a blowback there in terms of not cutting that production. And the oil markets continue to react.
John, in terms of looking forward into 2016, what are the dynamics that play there? I mean, is there any hope there that things will settle down
in the oil market?
DEFTERIOS: Well, I think because OPEC decided to kick the can down the road at the end of 2015, 2016 will be much more complicated, Paula, and
this is the reason why.
They're already producing around 31 1/2 million barrels a day as I was suggesting. But that's about 1 1/2 million barrels a day than the market
needs from OPEC right now.
And we have 3 billion barrels worldwide in storage, about 1/6th of that in the United States. There's massive oversupply.
So Saudi Arabia and the Gulf producers here in the Middle East are making a bet that U.S. shale production will be hit by the end of 2016 by about a
million to 1 and a half million barrels a day.
But that does not solve the problem and here's why. Because Iran wants to come back into the market if the sanctions are lifted.
The oil minister there in Iran suggests he wants to add at least a million barrels a day if not 1.5 by the end of 2016, so it eats up the fall in U.S.
shale production if you will.
Libya's producing 1/4th of what it had before the ouster of Muammar Gaddafi there and there's more production coming from Russia - about 10.7, 10.8
million barrels a day.
So a very fierce battle in 2016. They won't meet again until June. The downward pressure on prices is there and we don't see any kind of concrete
offer from the non-OPEC producers that many were hoping for - Russia, Kazakhstan, Azerbaijan, or Mexico.
So this is a fight, Paula. We're right near a six-year low and I would expect more downward pressure even before the end of 2015 and going right
into the first quarter of 2016 as well.
(END VIDEOCLIP)
NEWTON: Now no surprise that energy stocks dragged European markets lower. And now the major indices slipping again today, extending losses from
Thursday. Investors are still reacting to the ECB's new stimulus measures that have been largely a disappointment to the markets.
As you see there, some of the markets down a little bit more than half a percent. It must be said that Mario Draghi made his comments here in New
York after those markets closed.
Now, the mayor of Rio de Janeiro says the poor and the most vulnerable to climate change. He makes that point as the mayor of Rio continues to try
and deal with the climate change repercussions in his own city.
Eduardo Paes says he's trying to secure them and from those deadly effects of floods and mudslides. Rio has been struggling with water pollution as
it prepares as well for next year's Olympic Games.
Now I asked the Rio mayor how he and his city are trying to tackle climate change.
(BEGIN VIDEOCLIP)
EDUARDO PAES, MAYOR OF RIO DE JANEIRO: Rio is a city going through transformation. We're doing lots of things in mobility it's 150
kilometers of the Artis (ph) which takes out of the streets almost 4,000 busses.
We're doing almost 26 kilometers of light railway train in downtown Rio, making it a bad place for cars which is always a problem to every city.
There's a bunch of movements concerning resilience in Rio, a lot of actions to make the city a city that's a tropical city, in summertime there's lots
of floods and mudslides.
When you have better resilience, when you work on that, you can react much better and recover much better from this kind of problem.
So there's a lot of things - and, again - experiences that we are already using in next year in other cities and brought to Rio.
And the same happens when good experience of Rio go to other cities.
NEWTON: Rio is a gorgeous city. And I've been there and I've enjoyed some very clean beaches and some amazing walks and strolls.
But I've also been to the poorer communities in Rio and climate change - they're on the frontline of climate change even if we talk about the global
impact.
What are you doing to try and help those poorer communities in your city?
PAES: Always developing cities, in developing countries are the most affected by climate change. And in this city, the poorest people are the
ones that are even more affected.
So when we talk about resilience, what happens every summer in Rio - what's the history of Rio - with the floods, with the mudslides, lots of people in
the favelas and the poor communities of Rio, they die because of these floods and mudslides.
So when you talk about resilience, some of them you need to make constructions and we're doing a lot or in places where there are not a very
close solution, that you at least make some forms of measurement.
[16:50:06] If the rain is going to be big and you put sirens to allow people to get out of their homes if there's any dangers.
I mean, there's a bunch of things that we're doing in spite of - besides - urbanization of these poor communities in Rio so that these people won't
suffer. The people won't suffer so much from climate change.
(END VIDEOCLIP)
NEWTON: And I just want to add to that that he guaranteed that the water in Rio will be absolutely safe for those Olympic events despite recent
tests that say otherwise.
We'll have more "Quest Means Business" in a moment, but first take a look at the latest in innovation.
(COMMERCIAL BREAK)
NEWTON: Fourteen people were murdered in the attack this week in San Bernardino, California -- now mostly colleague's at the County's Department
of Public Health.
Jake Tapper reports on how their few hours away from work have turned into a terrible tragedy.
(BEGIN VIDEOCLIP)
JAKE TAPPER, ANCHOR AND CHIEF WASHINGTON CORRESPONDENT: They were cherished family members, best friends, parents - 14 people between the
ages of 26 and 60 who spent their final day celebrating together.
Kissing their loved ones goodbye in the morning, never believing they wouldn't come home.
RYAN REYES: The thought that was running through my mind was just like, no, no, no, no. This isn't true.
TAPPER: Ryan Reyes drove his boyfriend Daniel Kaufman to the Regional Center Wednesday as he did most morning. Kaufman ran a coffee shop there
where he trained disabled employees.
Kaufman was taking a break on a bench outside when he was killed.
REYES: He meant the world to me. He meant the absolute world to me. Yes, sorry.
TAPPER: Many of the victims were parents, leaving behind at least 18 children whose worlds are now changed forever.
JOLENE, MOTHER KILLED IN SHOOTING: Overall she was like an amazing person. Like she was so nice, like, she always supported me in everything I did.
TAPPER: Bennetta Betbadal had three children. Her family and friends say she came to America from Iran at age 18 to escape religious extremism.
KEN PAULSON, FAMILY FRIEND OF BENNETTA BETBADAL: We just find it sadly ironic and horrible that a woman that came to the country under these
circumstances would find herself gunned down by religious extremists.
TAPPER: Michael Wetzel leaves behind six children and his wife Renee. A friend, speaking for the family, told CNN how Renee learned of his murder.
VOICE OF CELIA BEHAR, FAMILY FRIEND OF MICHAEL WETZEL: Don't know why (inaudible) of survivors came and he wasn't in it.
They told her that if he wasn't in there, then he was gone.
[16:55:11] TAPPER: Robert Adams had always wanted to be a dad. He and his wife welcomed a little girl just 20 months ago.
On the fundraising page set up for his family, a friend posted quote, "He was 100 percent in Daddy Land." His family says he cherished every moment
with his daughter.
Twenty-seven-year-old Sierra Clayborn and Yvette Velasco were cherished daughters as well. "Yvette was an intelligent, motivated and beautiful
young woman," her family said in a statement.
On Facebook, Sierra's sister wrote, quote, "My heart is broken. I am completely devastated."
The family of the youngest victim is too. Aurora Godoy was just 26. She leaves behind a husband and a two-year-old son.
This community and the families of all the victims will need tremendous strength to move forward, a trait many learned from their loved ones.
JOLENE: I'm doing - I'm doing OK because what else can I do? I have to stay strong.
(END VIDEOCLIP)
NEWTON: Such a courageous daughter there. And it's important as we've had all of these developments today that we do remember the victims and
certainly the grief that's left behind for those families.
And we are expecting the lawyer of the shooter's family to speak at any moment now in California. Members of his - Farook's - family may also be
there. We want to bring that to you live as soon as it begins.
As you can see, it hasn't begun yet. We will be right back with more "Quest Means Business" right after the (inaudible).
(COMMERCIAL BREAK)
NEWTON: And the image you see there, that empty podium in California. We are expecting the lawyer of the shooter's family to speak any minute now.
We will bring you that live as soon as we have it. Of course, controversial here because the lawyer has maintained that this was not an
act of terrorism.
END
