tv Bloomberg West Bloomberg September 1, 2016 6:00pm-7:01pm EDT
hurricane. low lying communities have been evacuated and government offices closed at noon today. governor rick scott calls the storm potentially life threatening. new zealand issued a tsunami warning for the east coast of the north island after a magnitude 7.1 earthquake. the warning extends to auckland, their most populous city. turkey is threatening to suspend a deal with the european union if visa rezrixes for turkish nationals aren't lifted. e.u. representatives urged turkey to amend their anti-terrorism laws so the e.u. can lift the restrictions, a key incentive to stopping migrants crossing the aegean sea. florida officials say they found the zika virus in three trapped mosquitos in miami beach. that's the first time it's happened in the continental united states.
an additional 25 trapped mosquitoes have tested negative since the three in miami beach were found. global news, 24 hours a day. i'm mark crumpton, this is bloomberg. "bloomberg west" is next. emily: i'm emily chang, this is "bloomberg west." another blow for elon musk, the second spacex rocket explodes in just over a year this time also a blow for facebook's mark zuckerberg, we'll tell you why. facebook continues its expansion of live video onto its messenger platform. we'll hear if the co-creator turned competitor of facebook
live. and could pairing up with centex with an answer to better profits. but first our lead. 5 spacex falcon 9 rocket xploded on the launch pad in cape canaveral today. it occurred in routine preparations for an upcoming launch this saturday. in a statement they said there was an anomaly on the pad and the pad was clear and there were no injury. the falcon 9 in this accident was supposed to carry an israeli communications satellite into orbit that, too, was lost in the blast. shares of its parent company slid nearly 9% in tel aviv. the satellite was en route to space to beam internet service across africa for facebook. we'll get to that in a moment. but first, spacex had been ramping up with frequent launches to make up far backlog created by its last accident in june, 2015. saturday would have marked their ninth launch of the year. joining us on the phone from outside washington, d.c. is
irector of space studies marco seseros. how unusual is an accident like this and how might this have happened? >> it's extremely unusual for western launch companies. exs an activity, prelaunch test, static firing of the engines, that they were about to do, is something that they do before every mission just to make sure the engine the nine merlin engines that power the first stage of the rocket are working like they should. so they were preparing to do like a three to four second test firing of these engines and something must have happened when they were fueling, they were fueling the second stage, the upper stage of the vehicle when the explosion occurred. emily: how would you compare
spacex's safety records to other private space companies or even nasa? >> spacex has an excellent record. they have been launching an awful lot. they have a presence in all the major subgroups of the launch services industry, so they're an extremely active company. they've had some problems with the falcon 9. but nothing unusual. particularly for a company that is relatively new to this market. in five short years this company has become the establishment player within the launch services industry and to come so far in such a short amount of time and have as few problems as they've had is really amazing. emily: does that mean to say you don't think this will impact the likelihood of them getting future contracts? >> i don't. it's still too soon to tell what exactly happened but i would speculate that this is not something that is specific to
the launch vehicle itself. if this had occurred if the failure had occurred after launch or during flight, that would be something totally different. but this is something that happened before the vehicle was actually operational. so we'll have to wait and see but i don't expect this will delay them or certainly affect any future contracts. emily: elon musk said it originated around the upper stage oxygen tank. does that give you any clues? >> there's two stages to this rocket, the first and upper stage. what they do is they fuel up the vehicle and they were fueling up the second stage, probably. it's fuel with lek wid oxygen and kerosene a mix, so it's highly flammable. doesn't take much to cause a mark and perhaps an explosion of this magnitude. emily: marco, thank you for
weighing in. there is another billionaire upset by this loss, mark zuckerberg, because this satellite was part of facebook's internet all ng over the world. he issued a statement from africa, quote, i am deeply disappointed to hear that spacex's launch failure destroyed our satellite that would have provided connectivity to so many entrepreneurs how much big a blow is this to facebook? did they own the satellite? >> i don't think it was a coincidence that zuckerberg was in africa when this was set to launch. he's there talking to entrepreneurs in nigeria, kenya, making a first ever trip to subsaharan africa. talking to people about building businesses, connecting the world. this is extremely close not only to his mission for faceback but
to him permly he wants to be the person to bring these people online and help them have better connectivity. the ofolks behind the satellite are concerned about losing facebook as a customer. how crucial was this particular satellite to the internet.org plan and can they easily get another one? >> well, when it comes to satellites it's not easy to get another one. these are projects that take a very long time to come to fruition. this is something zuckerberg was excited about and talking about being a crucial part of the subsaharan african connectivity strategy as early as act of last year. he mentioned this as a key pillar of his strategy. there are other things he's doing. there are the drones that facebook has been working on, there's some radio-based ground level projects that they're working on. the satellite was just going to the easier, bigger -- emily: do they have other satellites in space or is this
the first? >> they are working on getting more. emily: all right, sara, we're going to continue to follow this story and you are sticking with me, two stocks we can't to watch, tess la and solar city, plunge on fresh doubts about whether elon musk can pull off a planned merger on wednesday. a filing for the merger showed the significant cash burn they'd have to manage and tess la considered a proposal before the may stock option offering. solar city's value has been falling fast than tess la's. elon musk has a lot on his plate right now. coming up, facebook unveils a new way to share live video. we'll talk to the former manager of facebook live that recently launched another live video streaming company that will compete with his former employer. and maddening and disappointing, he has strong words for the e.u.
emily: another story we are following, apple's fight with e.u. regulators of a tax penalty over illegal state aid from ireland. c.e.o. cook has said he's confident the company will win a court fight. here he is speaking to the irish broadcaster rte. >> it's maddening, it's disappointing, it's clear this comes from a political place. it has no basis in fact. or in law. and unfortunately, it's one of those things we have to work through. i have faith that eventually,
what is just and right will occur. and i don't believe the journey to get there will will be all roses by any means. i think there will be ebbs and flows of it. but i do have faith that the right outcome will occur. emily: also in that interview, cook said apple may bring $5 million of its offshore cash become to the united states. it can credit any tax it pays abroad against the top corporate tax break if it brings offshore profits home. facebook is continuing to expand its live video presence. the social networking giant launched an instant video today within its messenger platform. users can tap a video icon. last month a key player from facebook live struck out on his own, created his own live
streaming app. , the former ow facebook employee. why do you think you can do this and facebook won't eat your lunch? >> we're doing something really unique. at facebook we built this product that's designed for sharing with lots of people. one thing my co-founders and i learned are people are intimidated to go live to lots of people. a lot of moments you maybe only want to share with a handful of people and to the rest of the world they would feel pretty mundane. emily: isn't this instant video thing they just announced what you're trying to do? >> in some days it is, it validate what is we're trying to do and speaks to the idea of easing the anxiety of sharing the moment. we're building an experience
with all-around video and we're just getting started. emily: sara? sara: one thing i wanted to ask you is about the money making side of this. facebook recently talked about one way they'll monetize live videos, letting people put commercial breaks in, content partners could add commercial breaks. what do you think is the appropriate way to make money off live video? >> that's a good question. i think it's really, really early to know the right way. i think right now they're experimenting, trying things. >> is that a good thing to do? >> i think it's the right thing to do, i think you need to try a couple of different oproaches. and you know what, doing a commercial break might work for some partner bus might not work well for partners that don't have huge audiences. i think you're going to have to really try a lot of different things. you see people in different parts of -- in different parts of the world, like in china, for example, where live videos --
live video is blowing up. there's some interesting monetization models there. you have in-app purchases where people can pay to give feedback to the broadcaster and that's become popular. i think that we're just sort of starting to scratch the surface with monotyization for live video in general. everyone is trying to figure it out. >> do you know what you want to do? >> we don't yet. we're going to try a cup of -- couple of things. live is really part of the way you share. you can share something after the fact. we're trying to make it your modern day camcorder. so you can share live or after the fact. and so we might actually explore storage as a monotyization. it's actually video is is one of the biggest reasons why people run out of space on their phone. we also might explore going down the advertising route and try some things there. emily: why do you think you won't be the next merecat, a live streaming app that tried to
take on periscope, they're really struggling. will facebook and twitter be the only players in this thing? >> the reason why the facebook model has work sod well with facebook live is because they have a scale. when you're going after, when you're designing a product where it's all about sharing and reaching lots of people, you better have lots of people that broadcasters can reach. so i think that that was -- that's the challenge actually with a lot of live streaming apps out there. they're all really sort of trying to play in the space of, i use this as an app to broadcast to lots of people and that's going to be really, really difficult thing to try to, unless you have lots of scale with someone like periscope or facebook live. so we're really trying to focus on, instead of rebuilding your network, we use your contacts. you might just need a couple of people on a live feed to share with, might be your significant other or your best friend. emily: the graveyard is full of social media apps that have
failed. o you know, path tried to be a smaller social network for friends and family and didn't quite work out. why do you think it could work for video when it didn't work out, when it was really mostly photos? >> i think there's a few different challenges. you can do a private network or small network, i think some of the challenges that even path had, even though it was a small network, is you actually still needed a good scale of people to use it because the feedback model, for example, was very similar to facebook. so you post something you want to get feedback, want to get comments and likes on things you share. and it's interesting, you look at someone like snapchat, really in the last few years has started with one to two model. it was about sharing with a few people. they expanded to the one to many. but their feedback model was interesting in that it eased the pressure of how your content is doing when you share there. it's not about, you know, how --
how much feedback you're get, it's more about sharing that oment. >> do you feel that's something you're trying to prvide or do you want people to comment and interact and give feedback as well? >> that's something we're definitely inspired by. we wanted to create an experience that was really just took away the anxiety and pressure. most of, as i mentioned, a lot of live video apps and just video sharing in general is really kind of designed around sharing with lots of people. >> not really. you have facetime, you have skype, you have many ways to share with -- >> i think of those as somewhat different because it's sort of like video calling. if you want to capture a video and share it -- send toyota someone, believe it or not the most popular app out there today is s.m.s. that's what most people still use to send video. it's an awful experience. it gets compressed, it all gets stored on your device.
if there's anyone we're going up against it's s.m.s. >> the thing that helps with s.m.s., you can do it, you don't have to be waiting there to have a live experience with somebody, you can have it asynchronous. >> yeah, that's how we designed it too. we're trying to add value through the live experience so you can share in the moment, i can select emily and she'd be able to watch it as it's happening or she could watch it later fazz she got a video message. we want it to work for both instances. live is just kind of a format you're able to share. emily: all right, lively founder, former facebook live project manager. we'll check it out. i feel like it would be good for kids. coming up, should u.p.s. and fedex fear jeff bezos? we dig into his plan for amazon air. ♪
emily: a story we are watching, pokemon go fever is still alive. softbank reached a deal to make some of their stores in japan pokemon gyms. the idea is it would create foot traffic in their stores. shares jumped to their highest level in two weeks. researchers believe 30 million people log on to pokemon go to play every day. amazon has found another use for its streaming site, twitch. it streamed two original tv pilots on the gaming website and is seeking feedback from its users before committing to roduce entire seasons.
amazon bought twitch two years ago for around $1 billion. speaking of amazon, earlier this month they unveiled their primeair boeing 767. the goal, to getted orers to quds hers faster using their own planes. some analysts wonder what it means for fedex and ups. devon writes about this. tell us more about why amazon is doing this, tell us why it could save them rather than cost them more? >> amazon is growing so fast that they're overwhelming their longtime delivery partners, whether fedex or ups, at peak time, the holiday time. they're becoming a delivery company. they've leased 40 planes, the first one was the primeair plane we just saw in seattle. and you know, they're going to become one of the world's biggest delivery companies. that's got some people concerned, you know, investors
in fedex and ups, what does it mean for them? emily: isn't it insanely expensive? >> this is a company that spent $11.5 billion on shipping last year. they're spending a lot of money. they've built all of these distribution centers and primenow hubs and delivery stations but they're leasing the planes for the time being but you know, if they can't get all these packages delivered on time to prime members, amazon prime isn't going to grow asst fast an that's going to be a problem for the company. ultimately, you know, they have to. the question is, do they turn the delivery arm of the company into a business that actually generates money like amazon web services? a lot of people think that's going to happen. emily: talk to us about the broader shipping and logistics industry and why people are for the voice about this and if it indeed succeeds how that could cascade and affect the broader
picture here? >> amazon has ha history of creating businesses in house, just for themselves, amazon web services is a good example. fulfillment by amazon. then sort of opening them up to outside businesses, you know. other companies. and turning them into, i guess what amazon web services is expected to be a $10 billion business this year. so if amazon decides to do that with its delivery business, it's almost overnight become one of the world's biggest delivery companies and it'll be, could be a direct competitor to fedex and ups. right now amazon says they're growing so fast, they're still growing their business with those companies but they're taking some of the business they used to do with those companies and doing it in house. the question is, how far do they go? i think a lot of people think, you know, in five or 10 years, they are going to be one of the world's biggest delivery companies and a direct competitor to ups and fedex.
emily: devon leonard, read about his new piece in the upcoming issue of "bloomberg business week." and hear more every saturday and sunday on bloomberg television. coming up, we'll hear from the c.t.o. of india's largest conglomerate group on the company's next big move. tomorrow, don't miss a rare exclusive interview with russian president vladimir putin speaking with our own editor in chief john mickelplate. tune in tomorrow. ♪
lines for brexit negotiation. she wants to end the free movement of people coming to the u.k. from the european union and suggests she's willing to leave the e.u.'s single market to accomplish that. some hispanic leaders advising donald trump say they feel betrayed after his big immigration speech wednesday in phoenix, arizona. latino partnership for conservative principles president alfonso aguilar said, quote, i'm withdrawing my support. i was expecting something very different last night, end quote. 90 people were murdered in chicago in august, making it the deadliest month in the city in 20 years. it's already had more murders this year, 471, than new york and los angeles combined. that's 50% more than a year ago. georgetown university will give priority admission to the descendants of slaves owned by the maryland jesuits. the university's president said the move is to atone for the
school profiting from the sale f enslaved people in 1838. global news, 24 hours a day, powered by more than 2,649 journalists and analysts in over 120 countries. this is bloomberg. it's just after 6:30 p.m. thursday in new york, 8:30 riday morning in sidney. -- in sydney. >> let's take a look at new zealand. off by a few points in the first 30 minutes of friday trade. we are expecting a town day across the region. a.s.x. futures pointing low thorne back of weak oil and those weak factly numbers from the u.s. energy stocks here in australia likely to feel the pressure again. nikkei futures looking mixed. might be worth keeping an eye on a few of the japanese banks today. they have signed agreements with three major banks in japan
though it didn't name them, it's mitsubishi, and mizuho financial group. they're likely to be involved in a possible i.p.o. which the prime minister also backs. take a look at currencies at the moment at wes. i mentioned the weak manufacturing data out of the u.s. we're seeing fwapes in the new zealand dollar and australian dollar while the japanese yen pulling back to low every levels. some of what we're watching around the region this morning, i'm paul allen for bloomberg tv in sydney, australia. emily: mt. "bloomberg west" i'm emily chang. india's largest conglomerate
leads across the nation from industries from steel to software. most recently they've ventured into wearables and ecommerce, challenging the likes of fitbit nd others. our reporter sat down with their c.e.o. about how they plan to expand. >> if you think about it at a broad level with energy, food and wellness, and consumer products. the technologies, we think those areas that have an impact for 100 million people and have potential of $100 million in profit. those are areas where we would focus that brings us down to clean energy. fuel cells, and in food we are looking at the first example we g pesticide and consumer
are looking at wearables. our starting point is active wearables for workers. we believe that that will help cap the market and we are playing from a position of power with the factories. we will build a product that's much better than a consumer product as well. we are identifying cases with machine to machine communication is going to happen. it's not a machine where analytics happen and a human makes the decision but we want to automate as much of that. >> developments in consumer electronics are fascinate, you're making wearables for yoga enthusiasts and factory workers. what else is brewing in the works in consumer electronics? >> we do have puma, an outlet
for various products we make. but at this point in time we are very limited in what we offer as products. so the goal would be to increase the offerings. >> how to you see the wearable device market developing in india. you have players like fitbit and apple. >> so the group models at this point in time. so while people might buy a fitbit or apple or any other form of fitness wearable, they drop off. it's going to take a new form. we are looking at it more holistcally. so looking at health from a standpoint of sunlight exposure, breathing patterns, gut sounds, stretching, in addition to things like pulse rate and heart rate. so that we are tied to
personalized wellness might be a way that it will be more successful in the consumer segment. >> what's the late thoennes digital platform? >> the idea there is to bring the patient, the doctor, the pharma companies as well as the insurance companies on one platform but the longer term vision is for us to make use of the data to gain insights which will help us move from diagnose and cure to improve treatment. >> let's talk about apple. the finance minister in india approved a proposal that may make it easier for aple to open stores there. what do you make of their push into the indian market? >> i think it's good for every company to look at india as a market. india has to become a lead market. what i mean by that is india has to demand products and services
based on its unique needs and that will drive innovation across. in india, o happen india has to become a lead market. so more companies like apple coming in and meeting the needs of consumers will help us get there faster. >> you report directly to cyrus mystery. what are his top priorities, is it turn around loss making companies, investing in tech and innovation? >> his priority will be to look at the portfolio and reaugment the portfolio so we are looking at a profitable, sustainable growth. there's a lot of patience in the tata group. it's not that they're looking for the turn around story overnight. there's a lot of patience as long as we're investing in the areas which will be long-term success. so first priority would be portfolio and making sure we have the right portfolio. technology is confident of the
trategy as well. we have aspects of technology from visiting along with us to the universities and going to startup companies across the globe. so it's not limited to india. >> bloomberg reported that you are looking to offload assets abroad in steel, communications, power. are we going to see more of a pullback overseas to focus on the domestic market? >> no, actually, it's not. the focus is to have the right portfolio so along with the divestment, we have had investments as well. it balances out. 30-pluswould be listing billion dollars. the repositioning of the portfolio is part of the strategy. >> earlier this year you launched an ecommerce venn chour. how will tata compete in a place
dominated by snapchart and amazon? >> we have a significant presence with retail athletes. retail athlete -- outlets, we re going to increase that. so the way we're going to do it, the consumer will have access to the neighborhood store, if he or she wants to buy from that store, either go there or get it delivered which will be quicker, but also the ability to return the products to these physical outlets will help gain the trust on the consumer. the other aspect of the trust element is the ability to deliver the right product to the consumer so there have been many instances where consumers have been delivered products which have been, consumers felt it was easey to use or it was wrong product or empty boxes were
sent. we are not doing a warehouse based approach as much as directly the portfolio of companies which are part of the ecommerce business which are tata companies and non-tata companies as well. >> interesting. but startups tend to be more agile. does that put you at a disadvantage? >> the way i look at it, we're a startup with deep pockets. so that's how i think of it. so there is an ability which is possible from tata and this adventure has been launched. >> and what about mma, did you look at the startups in the various verticals you're expanding into? >> we're seeing news that tata group companies have acquired companies in the recent past as well but even at the tata sun level we do that. emily: that was the tata sun
c.t.o. a story we're watching, vera phone shares tumbled after cutting sales forecast for a econd quarter. many merchants have already made the transition, leading some to worry about a slowdown. coming up, german banks are king a page from other companies to remain relevant. we'll hear from a leading player next. and this weekend we'll bring you our best interviews from the week, including our market moving conversation with ed williams, c.e.o. of twitter, why he says twitter should weigh all options. this is bloomberg. ♪ 6 color
emily: germany's largest bankers are fostering relationships with fintech companies. their revenues rose. our reporter spoke to c.e.o. of one of these. >> the banking industry is ready for disruption. it's basically there since three years now. but because of negative interest rates and cost infrastructure that doesn't fit to that negative interest and customers demanding for more straight through digital process, definitely a big topic right now.
>> how much are you working against the banks or with the established banks? >> we don't see it banks versus fintech. it's more who will solve the customer problems or the customer demands quicker. it's a game, tech versus bank. when you see, when you're being a banking ceo it should be more frightening for companies like apple, google, or amazon, or the young, fast-moving tech companies, not because they know banking better but because they know how to bring in the best tech and digital products. >> i think what's fascinating about finleaf in particular is you call yourself a business building you find the business problem you want soft -- solved and then seek out the entrepreneur. how hard or easy is it to find talent within germany at the moment?
>> in general, finding the best talent is always difficult. we profit a lot from that that we are able to build in a branch in two years. we are getting thousands of applications per month. every new startup can benefit from. however, interesting is that brexit is helping us in getting even better talent. more senior banking experts are interested in coming to a city in berlin, where we are based. the tech challenges usually get from eastern europe, berlin as well, very international city. finleaf hires people from more than 0 nations right now. >> how international do you want the businesses you create to become? >> our focus is europe. the regulation is quite light there.
especially in the european union. that's the -- that's a big market for us. that's where we start and where our focus is. we are active in 10 countries already. >> our carolyn hyde there reporting from london. on today's funding board, the fantasy sports company draftkings raised $150 million. investors included revolution growth, co-founded by a sports magnate. fortune reported earlier it was raised as a lower valuation than companyillion value the recently established. it will help boost draftkings as it heads into football season, the busiest time of the year. coming up, safety concerns about a new smart phone. we check in with our asia tech team next, this is bloomberg. ♪
wilson. i turn my wrist like this, it starts moving around. >> what we're going to do is hands down. now, like you're throwing a baseball. put your hand this way to have him drive that way. >> he got around he got around. force is strong. >> that's the main driving feature of the force band. there's another mode in our rce band that's more for not driving, but fun. >> training has begun. i'm going to say you have a fighter, put that in your hand, i'm going to do this. wherever you want. so you can sort of turn your force band into anything you want from the "star wars" universe. a light saber, any ship, some of the characters as well. emily: one last time? o!
that was adam wilson, co-founder f sphero, showing me the latee bb-8 toy. sm of -- many of those will be under tree this is christmas. the new movie expected to release at the end of the year. je die knights can start -- jedi knights can start training with the droid when it ships late they are month. and samsung having problems with the galaxy note 7, there are videos of it catching fire. joining me to break it down, peter, our asia editor. what are the real reasons for the delay? peter: samsung has not said what's behind the halt in the shipments at this point. this is taking place just in
south korea. they haven't gone beyond that. they haven't explained it. but there have been reports as you mentioned of explosions and fires starting with the samsung note. not a good sign, obviously. they've halted these, looks like they're digging into it and doing more research on what's behind the problem. emily: how serious is this problem? >> well, they just introduced the phone last month so it's certainly not a good sign. the phone got very good reviews which is something samsung has been looking forward to. they have been struggling to have more hits as they go forward. this is a setback for them. there are reports out of korea today that samsung may end up recalling the phones, that could be in korea, could be broader than that. it could even be a global recall at this point. that would certainly be a big deal and big setback for the company. emily: state run media reporting the possibility of a global recall, you know.
at what point do we find out if hat's going to happen? peter: as soon as possible. we're digging into it. the local newspapers are digging into it. i think samsung is going to -- they have to bring some clarity to the situation soon. people are out there buying these phones. emily: how do tech companies handle these kinds of battery issues? >> there have been several. as companies experiment with new kinds of batteries that have longer charges, they've run into these problems in the past. apple, of course, had similar sorts of things when people were connecting their phones to chargers that were not apple chargers. there were some problems with hover boards in the past also. companies typically recall them. in the case of apple, what they did is made sure people were using their authorized chargers in order to make sure that the charger and the phone worked together. it's not clear exactly what's behind this problem but you expect samsung to dig into it and try to bring clarity to the
situation and work out real solutions. emily: talk to us about the bigger issues here, samsung, the smartphone market is slowing. they're trying to keep up with apple. apple is on the verge of announcing its next generation iphone. ow critical a time is this for samsung? peter: that's a good point. it could not come at a worse point for samsung as apple prepares to come out with new phones. that's an issue for the company at this point. they have been on a bit of a resurgence. samsung does more than just phone, they sell components to apple and other smartphone players in the market. they have the opportunity to sell components. but they want the smartphone business to do well and it looked like they were seing a resurgence up until this point. emily: our peter elstrom from tokyo, i know you'll keep us updated, thank you for joining us. that does it for this edition of "bloomberg west."
tomorrow on bloomberg television and radio, don't miss a rare and exclusive interrue with russian president vladimir putin speaking with our editor in chief. tune in all day friday for exclusive conversation. our coverage continues next week with a special hour-long report at noon new yorktime, 5:00 p.m. london. that's all for now from san francisco. this is bloomberg. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." charlie rose: tell me about "horace and pete". how did you come to this? louis c.k.: it just-- i don't know it's weird. it's like i feel like i found this family in my head somewhere. i don't know. i got interested in doing a show that was like multicamera the way a sitcom was shot but without the audience, without the laugh track and without the need for the constant jokes, that pumping of jokes that sitcoms have. because what you are left with is that live feeling. it's kind of like a multicamera